Definitions are referenced from various governmental real estate sites,
IAAO
Data
Information expressed in any of a number
of ways. " Data" is the general term for masses of numbers, codes, and symbols generally,
and "information" is the term for meaningful data. "Data" is the plural of datum,
one element of data.
Data Edit
The process of examining recorded data
to ensure that each element of data is reasonable and is consistent with others
recorded for the same object, such as a parcel of real estate. Data editing, which
may be done by human beings or by computer, is essentially a mechanical process,
distinct from verifying the correctness of the recorded information by calling or
writing property owners.
Data Management
The human (and sometimes computer) procedures
employed to ensure that no information is lost through negligent handling of records
from a file, that all information is properly supplemented and up-to-date, and that
all information is easily accessible.
Date of Sale
(date of transfer)
The date on which the sale is agreed.
This is considered to be the date the deed, or other instrument of transfer, is
signed. The date of recording can be used as a proxy if it is not unduly delayed
as in a land contract.
Datum (Geodetic)
(1) A reference surface consisting of
five quantities: the latitude and longitude of an initial point, the azimuth of
a line from this point, and two constants necessary to define the reference spheroid;
the basis for the computation of horizontal control surveys in which the curvature
of the earth is considered (leveling). (2) A level surface to which elevations are
referred; usually, but not always, mean sea level.
Debt Capitalization Rate
Debt component of an overall direct capitalization
rate. Computed by dividing annual interest payments by the market value of debt.
Debt Coverage Ratio (DCR)`
The ratio of net operating income to debt
service, which is used to estimate the overall capitalization rate in direct capitalization.
The formula for the overall capitalization rate (OAR) is OAR = DCR + Annual debt
cost + Debt percentage of capital structure.
Deed
A document (or written legal instrument)
which, when executed and delivered, conveys an interest in or legal title to a property.
Deed Restriction
A limitation to property rights that transfers
with the property regardless of the owner.
Deed, Bargain and
A bargain and sale deed implicitly or
explicitly asserts the grantor's ownership of the property conveyed, but it makes
no guarantees to defend the title. It provides the grantee more protection than
a quitclaim deed but less than a special warranty deed. The words of conveyance
"bargain and sale" distinguish a bargain and sale deed.
Deed, Quitclaim
A deed in which the grantor conveys or
relinquishes all interests that he or she may have in a property, without warrant
as to the extent or validity of such interests.
Deed, Tax
A deed by which title to real property,
sold to discharge delinquent taxes, is transferred by a tax collector or other authorized
officer of the law to the purchaser at a tax sale.
Deed, Trust
(1) Broadly, a deed by which title to
property is transferred to a COMODOe to be held in trust. (2) Specifically, a deed
by which title to property is transferred, conditionally or unconditionally, to
a COMODOe to be held for the benefit of creditors or obligors of the grantor. (3)
Loosely, the agreement made between an issuer of bonds and the holders of such bonds
that is deposited with the COMODOe, whether or not such agreement involves the transfer
of property to the COMODOe. Also called "deed of trust."
Deed, Warranty
A deed containing a covenant of warranty
whereby the grantor of an estate of freehold guarantees that the title that he or
she undertakes to transfer is free from defects and that the property is unencumbered
except as stated, and whereby the grantor, for him- or herself and his or her heirs,
undertakes to defend and protect the grantee against any loss that may be suffered
by reason of the existence of any other title or interest in the property existing
at the time the deed was executed and not excepted therein. Contrast deed, quitclaim.
Deferred Maintenance
Repairs and similar improvements that
normally would have been made to a property but were not made to the property in
question, thus increasing the amount of its depreciation.
Demographics
Characteristics of human populations,
for example, size, density, and distribution.
Dependent Variable
A variable, such as sale price, the value
of which is predicted by the values of other variables, such as location and finished
living area. Such a variable may be said to depend on the other (independent) variables.
Depreciation
Loss in value of an object, relative to
its replacement cost new, reproduction cost new, or original cost, whatever the
cause of the loss in value. Depreciation is sometimes subdivided into three types:
physical deterioration (wear and tear), functional obsolescence (suboptimal design
in light of current technologies or tastes), and economic obsolescence (poor location
or radically diminished demand for the product).
Depreciation Method, Sinking-Fund
A method of writing off the cost of a
property over the period of its expected economic life involving: (a) equal annual
payments into a sinking fund, the sum of which, if each be increased by compound
interest from the date made until the end of such period, will equal the original
cost of the property value less any anticipated scrap value at the end of its expected
economic life; and (b) increasing annual depreciation charges, each of which is
equal to the sum of the annual sinking fund payment and the amount of interest earned
on the sinking fund during the year. Note: The procedure outlined above requires
that the earnings on the sinking fund be credited directly to profit and loss. If,
instead, they are offset against depreciation expense, the net depreciation charge
will be constant and equal to the annual payment into the sinking fund.
Depreciation Method, Straight-Line
A method of writing off the cost of a
property over the period of its expected economic life by means of equal annual
charges, the sum of which is equal to the original cost of the property less any
anticipated scrap value at the end of its expected economic life.
Depreciation Method, Unit of Production
A method of writing off the cost of a
machine over the period of its expected economic life-such economic life being measured
in terms of units of production rather than in years-by means of periodical charges
measured by the number of units produced during the period, the sum of which charges
is expected approximately to equal the original cost of the machine less any anticipated
scrap value at the end of its expected economic life.
Depreciation, Curable
That part of depreciation that can be
reversed by correcting deferred maintenance and by remodeling to relieve functional
obsolescence. See also cost to cure.
Depreciation, Economic
(1) Depreciation due either (a) to an
increase in supply of the property under consideration or (b) to a reduction in
monetary demand for properties of the type under consideration unaccompanied by
shifts in demand from such properties to other properties and/or personal services
(preferred). (2) Depreciation of any sort other than physical depreciation. Note:
A depression is accompanied by economic depreciation of the type indicated in 1(b)
because of a general decline in purchasing power. Depressions are also accompanied
by obsolescence because of changes in the relative distribution of purchasing power.
Contrast depreciation, physical; obsolescence.
Depreciation, Functional
Synonymous with the preferred term obsolescence.
Depth Factor
The ratio of the estimated front-foot
value of a lot of more or less than standard depth to the estimated front-foot value
of a lot of standard depth.
Depth Influence
(1) The effect of increasing depth on
the value of a lot or parcel having a given frontage. (2) The increment or decrement
of value arising from a depth greater or less than that of the standard lot. See
lot, standard.
Descriptive Statistics
(1) The branch of the science of statistics
that is concerned only with characterizing or describing a set of data (numbers).
(2) By extension, the measures used to characterize a particular set of data. Compare
inferential statistics.
Digitization
(1) The process of converting spatial
information, originally compiled on orthographic materials or base maps, into digital
form for incorporation into a geographic information system. (2) Referencing of
ground control points or lines to a remotely sensed image.
Diminished Utility
The difference in utility between a new
improvement representing the highest and best use of the site and the existing improvement
in its current condition.
Direct Equalization
The process of converting
ratio study results into adjustment factors (trends) and changing locally determined
appraised or assessed values to more nearly reflect market value or the legally
required level of assessment. See also equalization and indirect equalization.
Direct Market Method/Analysis
One of two formats of the sales comparison
approach to value (the other being the
Comparable Sales Method). In the direct market
method, the market analyst specifies and calibrates a single model used to estimate
market value directly using multiple regression analysis or another statistical algorithm.
Discount Rate
(1) The rate of return on investment;
the rate an investor requires to discount future income to its present worth. The
discount rate is made up of an interest rate and an equity yield rate. Theoretical
factors considered in setting a discount rate are the safe rate earned from a completely
riskless investment (this rate may reflect anticipated loss of purchasing power
due to inflation) and compensation for risk, lack of liquidity, and investment management
expenses. The discount rate is most often estimated by band-of-investment analysis
or sales comparison analysis that estimates typical internal rates of return. (2)
In monetary policy, the rate that the Federal Reserve Bank charges member banks
to borrow. Compare recapture rate.
Discounted Cash Flow Analysis
(1) A yield capitalization method used
to calculate the present value of anticipated future cash flows. (2) Analysis of
the present value of an incomeproducing property by isolating differences in the
timing of cash flows. Net cash flows from all time intervals involved in the analysis
are discounted to present value by an appropriate discount rate.
Discovery
(1) The process whereby the assessor identifies
all taxable property in the jurisdiction and ensures that it is included on the
assessment roll. (2) That part of a lawyer's trial preparation in which witnesses
from the opposing side answer questions.
Discrete Data
Discrete data are qualitative items that
have three or more predefined values (for example, topography: level, rolling, or
steep).
Discrete Variable
A variable for which it is not conceivable
that, given any two observed values, a value lying between them may occur. For example,
the number of rooms in a house is a discrete variable, but the living area of the
house is not. See also binary variable and continuous variable.
Dispersion
The degree to which data are distributed
either tightly or loosely around a measure of central tendency. Measures of dispersion
include the average deviation, coefficient of dispersion, coefficient of variation,
range, and standard deviation.
Dissimilarity Function
An algorithm used to assign an index of
dissimilarity (or similarity) to properties as Compared to a subject.
Distribution-free Statistics
A set of robust nonparametric methods
whose interpretation or reliability does not depend on stringent assumptions about
the distribution of the underlying population from which the sample has been drawn.
See also parametric statistics.
Divided Rights
Rights to property that have been divided among several owners in partnerships, joint tenancy, tenancy in common, and time-share
units.
Dividend Yield
The ratio of cash dividends to cash invested.
Dividends
Equity investment income earnings.
Domicile (or Domicil)
That particular locality wherein a person
is legally deemed to have his or her true home or place of abode. Note: A person
always has one, and only one, domicile. Domicile at one place is not lost until
a new domicile is established elsewhere. In case one has more than one place of
abode, domicile is determined with reference to one's attitude rather than in accordance
with one's physical presence in one or other of such places. Compare residence.
Dominant Estate (Affirmative Easement)
The right to perform a specific action
on a property owned by another.
