Dormer to Draw Tenant

 

Dormer

The dormer is a structure or space-enlarging element that protrudes upward from the roof with a vertical wall.

Dormer Window

The dormer window is an attic-level window protruding from a sloped roof, with a small, roofed dormer of its own.

Double Closing

In real estate, the double closing exchanges the property twice, between three parties. If allowed by all parties, it is a way for the middle party to purchase and resell properties with little (or no) cash of their own. The double closing may also be used to conceal the identity of the seller or final purchaser.
With a double closing, the original seller conveys the property to the middle party. That middle party then sells the property to the final buyer. In turn, the final buyer pays the final price for the property to the middle party, who then gives a portion of the funds to the original seller.
It is a staple with many creative financing and investment arrangements. For example, Amy’s lease on her condominium contains a purchase option for $100,000. However, when she learns that the condominium (she’s renting) is now worth $150,000, she decides to capitalize on the difference by finding a buyer willing to pay the $150K market value. She then uses a double closing to complete the two transactions: her exercising the purchase option to buy the condominium unit; and the second transaction to sell it to her end seller. In the process, Amy pockets about $50,000 in profits.

Double Escrow

The double escrow is a transaction escrow that accommodates two connected closings. The double escrow allows the seller of real property to use the same escrow account to turn around and purchase another property.

Double Net

Also called a Net-Net lease, the double net lease is a lease arrangement that assesses the tenant with a base rent, plus an additional assessment for the tenant’s share of two of the three types of additional building operating expenses: real estate taxes, insurance or common area maintenance expenses. A triple-Net lease includes all three of these expenses.

Double Taxation

Nobody wants to overpay their taxes, which is why most real estate investors avoid using regular corporations. The standard “C” corporation must pay income taxes on its corporate profits; then the shareholders must pay income taxes again on the dividend income they receive from the corporation. Smart investors, use subchapter-S corporations or limited liability companies (LLCs) for their investment entities.

Double-Hung Window

The double-hung window is a type of sliding window that consists of two sashes on separate vertical tracks. The lower sash can be raised to allow cool air to come into the room, while the upper sash can be lowered to let warm air exit the room. This is the most popular type for homes.

Dovetail Joint

The dovetail joint is a wedge-shaped joint used to connect boards or other elements together. Dovetail joints can secure two wood pieces together without the use of any nails or tacks, although wood glue and finishing nails can be used for added support.

Dower Rights

The dower rights is a form of legal life estate practiced in certain states that recognizes a wife’s life estate interest in the property of her deceased husband. Compare this with the husband’s curtesy rights. Neither the dower nor curtesy rights can be transferred or assigned, although they can be released if both spouses sign a deed of conveyance.

Down Payment

The down payment is the portion of the property price that will not be covered by the loan amount, other financing or subsidy. The applicant is responsible for paying the down payment. Most loan programs establish a minimum down payment required, calculated as a percentage of the purchase price, based on the loan program. For example, a loan may have an 80% loan-to-value (LTV) maximum limit, that caps the loan amount to only 80% of the purchase price or appraised value, producing a 20% down payment minimum.

Down REIT

The Down REIT is a variation of the real estate investment trust (REIT) that uses partnership units to acquire properties. The Down REIT is subordinate to the REIT. Compare with the UPREIT entry.

Down Zoning

The term down zoning refers to the process by which a local zoning board re-designates a property’s zoning to less intensive usage.

Downspout

The downspout is a water pipe that transfers collected rainwater from roof gutters to the drainage system.

D-Paper

The term D-paper refers to loans, bonds and other debt instruments that are considered extremely high risk and very poor quality. They usually involve either hard-money loans and financing for borrowers currently in bankruptcy or foreclosure. In the residential loan industry, conforming loans are considered A-paper, while non-conforming loans are considered sub-prime, B-paper or C-paper. Compare with the A-Paper, B-Paper and C-Paper entries.

Dragnet Clause

The dragnet clause is a provision in a mortgage deed that pledges two or more properties as collateral for an obligation, with a dangerous all-or-nothing arrangement. If the borrower defaults on one mortgaged property, the dragnet clause allows the lender to declare default for all properties. Another use of the clause is for the borrower to make a blanket guarantee that all other borrower liabilities will be subjected to this promissory note.

Drainage

With home construction, the drainage system refers to the design or landscaping that forces water away from the structure’s foundation. Pipes and ground elevation protects the building from potential flood and water damage.

Drainage Fee

The drainage fee is an impact fee charged by many local governments to offset the added expense that additional developments will impose on the local government. Specifically, it is a fee charged to developers and builders who want to connect to a community’s storm drainage system. It may also be a fee to drain a parcel of land that may currently hold water or is a wetland

Drainage Law

The area of drainage law relates to how surface water on real property is addressed in areas prone to flooding or where water is scarce. Specifically, a property owner who changes the drainage pattern on his or her land may be liable for damages if those changes result in unreasonable harm to neighboring or downstream properties.

Draw

With construction loans, the draw refers to the staggered disbursement of funds to contractors and suppliers. Construction loans typically do not release all funds at the initial closing. Instead, construction loans release funds as the project reaches specific, pre-determined stages.

Draw Tenant

See the Anchor Tenant entry.