Deal Structure: With regard to the financing of an acquisition, deals can be unleveraged, leveraged, traditional debt, participating debt, participating/convertible debt or joint ventures.

Debt Service: The outlay necessary to meet all interest and principal payments during a given period.

Debt Service Coverage Ratio (DSCR): The annual net operating income from a property divided by annual cost of debt service. A DSCR below 1 means the property is generating insufficient cash flow to cover debt payments.

Dedicate: To appropriate private property to public ownership for a public use. Sometimes a good tax move to unload property that is not worth carrying.

Deed: A legal instrument transferring title to real property from the seller to the buyer upon the sale of such property

Deed in Lieu of Foreclosure: A deed given by an owner/borrower to a lender to satisfy a mortgage debt and avoid foreclosure. Even with that, a lender may well be losing money by taking back the property if values dropped.

Deed of Trust: An instrument used in place of a mortgage by which real property is transferred to a trustee to secure repayment of a debt

Default: The general failure to perform a legal or contractual duty or to discharge an obligation when due

Deferred Maintenance Account:
An account a borrower is required to fund that provides for maintenance of a property. See CAM.

Deficiency Judgment:
Imposition of personal liability on a borrower for the unpaid balance of mortgage debt after a foreclosure has failed to yield the full amount of the debt

Demising Wall:
The partition wall that separates one tenant’s space from another or from the building’s common areas

Depreciation: A decrease or loss in property value due to wear, age or other cause. In accounting, depreciation is a periodic allowance made for this real or implied loss.

Design and build: A system in which a single entity is responsible for both the design and construction.

Discount Rate: A yield rate used to convert future payments or receipts into present value.

Distraint: The act of seizing personal property of a tenant in default based on the right and interest a landlord has in the property. More often in commercial leases.

Diversification: The process of consummating individual investments in a manner that insulates a portfolio against the risk of reduced yield or capital loss, accomplished by allocating individual investments among a variety of asset types, each with different characteristics. In plain english, don’t put all your eggs in one basket.

Dividend: Cash or stock distribution paid to holders of common stock. REITs must pay at least 90 percent of their taxable income in the form of dividends.

Dividend Yield: The annual dividend rate for a security expressed as a percent of its market price (annual dividend/price = yield)

Dollar Stop: An agreed dollar amount of taxes and operating expense each tenant will pay on a prorated basis. See CAM.

DOWNREIT: An organizational structure that makes it possible for REITs to buy properties using partnership units. The effect is the same as an UPREIT, however, the DOWNREIT is subordinate to the REIT itself, hence the name.

Due Diligence: Activities carried out by a prospective purchaser or mortgager of real property to confirm that the property is as represented by the seller and is not subject to environmental or other problems. Many parts of a puzzle – being diligent or “buyer beware”.

Due on Sale:
A covenant (caluse) that makes a mortgage due if the property is sold before the maturity date