Bear Island Land Co., Inc.

~Your Recreational Real Estate Professionals~

Dictionary of Terms



Debt-To-Income Ratio
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debt is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans)
A legal instrument, duly executed and delivered, whereby the owner of real property (grantor) conveys to another (grantee) some right, title or interest in or to real estate.
Deed Restriction
A provision in a deed controlling or limiting the use of the land.
Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.
Deferred Maintenance
Postponed or delayed maintenance causing decline in building's physical condition. Delinquency Failure to make payments on time. This can lead to foreclose.
The loss in value due to deterioration through ordinary wear and tear, action of the elements, functional or economic obsolescence.
Discount Points
See points
Down payment
Money paid to make up the difference between the purchase price and the mortgage amount. Down payments usually are 10 percent to 20 percent of the sales price on conventional loans, and up to 5 percent on FHA and VA loans.
Dual Agent
If a real estate broker represents both the buyer and the seller in the same transaction.
Due-On-Sale Clause
A provision in a mortgage or trust deed which allows the lender to call a promissory note immediately due and payable in full upon the sale or transfer of a secured property; Allows the lender to raise the interest rate or demand other changes in terms upon assumption of the loan.




Ely, Minnesota's most experienced Realtors, serving Buyers and Sellers in the Ely, MN area since 1995.