GLOSSARY OF REAL ESTATE TERMS

D/B/A
Doing business as.

DEDICATION
A grant of a parcel of real property from a private owner to the public and an acceptance of the property by the proper public authorities on behalf of the public.

DEED OF TRUST
A written instrument that, when duly recorded in the appropriate county records, creates a lien against a parcel of real property, which lien secures consensual debt. By signing a deed of trust, the debtor (borrower) transfers legal ownership of the property to a trustee, to be held in trust, for the benefit of the creditor (lender). The trustee re-conveys legal ownership to the debtor when the debt is paid-in-full; or, if the debtor defaults, then the trustee sells the property on behalf of the creditor. In Colorado, the trustee is a public office. Compare mortgage. See lien.

DEFAULT
A failure to do something required by duty, which duty arises pursuant to a contract or by law. Two common examples of default with regard to real estate are non-performance of the terms of a purchase and sale agreement and non-compliance with the terms of a loan agreement (especially with regard to repayment of the debt).

DEVISE
A gift of real property made by will. Compare bequest.

DOCUMENTARY TRANSFER FEE
A tax, based on sales price, which is collected by the State of Colorado upon the transfer of a parcel of real property.

DOWER
A wife’s right, at common law, upon the death of her husband, to a life estate in one-third (one-half in some states) of all of the parcels of real property that he owned or inherited during their marriage. Abolished in Colorado. Compare curtsey.

DUE-ON-SALE CLAUSE
A clause in a mortgage (or deed of trust) that gives the lender the right to demand payment-in-full (acceleration) when the parcel of real property encumbered by the mortgage changes ownership.