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Glossary - D
D1 Non-Residential Institutions – Use Class: Any use not including a residential use – for the provision of any medical or health services, as a creche, day nursey, day centre, for the provision of education, museum, display of works of art, museum, public library, public hall, public worship or religious instruction.
D2 Assembly and Leisure – Use Class: a cinema, concert hall, bingo hall or casino, dance hall, swimming bath, skating rink, gymnasium, outdoor or indoor sport/recreation area not including motorised vehicles or firearms.
Damages – money which is recoverable by court action by someone suffering a loss or injury resulting from a breach of contract, a breach of a statutory duty or tort.
Decoration Covenant – If specified in a lease, there may be a obligation to decorate internally, externally or both. Can be used for specific decorations such as what furnishings should be applied or what paint should be used.
Deed – Written evidence of a legal transaction which has to be signed, sealed and delivered. (see escrow, execution, seal, stamp duty)
Deed of Assignment – A Deed of Assignment is used where an existing tenant or tenants wish to leave a property before the date of termination of any Tenancy. This typically includes Commercial Tenancies and Assured Shorthold Tenancies for student lets. Existing Tenants can assign their rights and obligations under the tenancy to a replacement tenant or tenants.
Default Notice – A notice which is served where one party to an agreement (contract) is in alleged breach. The notice states the nature of the breach and required remedies prior to legal proceedings for breach of contract.
Demise – In a strict legal sense this means the same as “lease”, or the right to exclusive possession for a specific term. In practice often used to simply identify the demised premises, the subject to the lease.
Deposit – A sum of money held (usually in a special account) as security for the outcome of some event. A holding deposit is held against the tenant’s or buyer’s default in purchase or taking up a tenancy. A security, rental or damage deposit is held by the landlord or his agent against damage, cleaning or other expenses involved in residential lettings.
Depreciation – The monetary value of an asset that decreases over time due to use, wear and tear or obsolescence. Some examples of assets that are likely to depreciate over a specific period of time include equipment, machinery and currency.
Determination – The generic term for the verdict of a Third Party surveyor appointed under a Dispute Resolution clause to make a conclusive judgement to resolve a dispute between the parties to a lease.
Dictum – A formal statement usually made by a judge is the process of a judgement made in a particular case.
Dilapidations – Items of disrepair of a rental property arising out of a tenant’s failure to comply with the lease (contract) terms, giving rise to a landlord’s right to damages.
Diminution Valuation – A claim for dilapidations is capped by Section 18 (1) of the Landlord and Tenant Act 1927 insofar that damages for breach of repair cannot exceed the amount by which the value of the premises is diminished by virtue of such breach.???
Discounted Cash Flow – A method of investment appraisal which calculates future cash inflows and outflows in present day values by discounting at an appropriate rate of interest. The most commonly used variants on this method are the Internal Rate of Return (IRR) and Net Present Value (NPV)
Discount Rate – The rate of interest selected and used in DCF when calculating future incomes and expenses.
Discretionary Trust – A trust where the trustees have discretion over who, within a specified group of individuals, shall receive benefits and in what proportions.
Disposal (disposition) – The transfer of land (includes buildings) title by sale, assignment, the granting of a new lease, death, gift or exchange.
Disregards – Items which are ignored when valuing property, usually in regard to rent reviews and lease renewals under the Landlord & Tenant Act 1954 Part 2 (Business Tenancies).
Disrepair – Usually an evaluation of the condition of a property, which feature areas which require major repairs. Tenants can have obligations to repair their premises; not complying is referred to as disrepair.
Distress – The act of seizure of goods without legal process to enforce satisfaction of demand. Can be used today in certain circumstances for the recovery of arrears of rent for business premises. A court order is necessary where residential premises are concerned.
District Valuer (DV) – Person employed by the Valuation Office, which is a part of the Board of the Inland Revenue, to carry out local valuations for taxation, compulsory purchase and other purposes on behalf of government and local authorities.