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D

Dead-line

A time limit, as for payment of a debt or completion of an assignment.

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Debt

The dept designates a right detained by a person known as the creditor toward another person known as the debtor. The debtor is the obliged of the creditor. The object of the debt consists of an obligation to either give or to refrain to give.

A company debt is the financing mode that represents money offered at its disposal by its creditors which has the contractually fixed remuneration and repayment date.

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Debt Ratio

Debt capital divided by total assets. This ratio will show how much the company relies on debt to finance assets.

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Declaration of Co-Ownership

The declaration of co-ownership divides the property into fractions. It includes the act constituting the co-ownership, the by-laws of the immovable and a description of the fractions.

The constituting act of co-ownership specifies the relative value of each fraction, indicating how that value was determined. It also determines, as a function of the relative value, the contribution of each fraction to the common expenses of the immovable, the contingency fund established by law and the number of votes attached to each fraction. The constituting act defines the destination or purpose of the immovable, i.e. the use the owners may make of it, as well as the destination of the private and common portions. The act also sets out the powers and duties of the board of directors of the syndicate and the general meeting of co-owners.

A detailed by-law stipulates rules on the enjoyment, use and upkeep of the private and common portions. The by-laws also contain rules for the operation and administration of the co-ownership, in particular, the composition of the board of directors and the conditions relating to the office of administrator.

The description of the fractions contains the cadastral description of the private portions and the common portions of the immovable. It also contains a description of the real rights affecting or existing in favour of the immovable

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Declared Rent

Rent paid by a lessee to the landlord as stipulated on a lease and linked to the use of the premises or part of them.

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Deductible or Share

The portion of each owner corresponding to its share of undivided ownership in the common elements and determines, at the same time, the number of votes it has at general meetings of co-owners.

The relative value of the fraction is also used to calculate the contribution of each of the co-owners for expenses arising from the co-ownership and operation of the property and the reserve fund.

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Deed of Sale or Bill of Sale

The real estate deed of sale designate the final contract of sale of a real estate by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties. The transaction becomes public as it is inscribed in the Land Register of Québec.

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Depreciation

A loss in property value from any cause.

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Discontinuance

The voluntary termination of litigation by a plaintiff who has elected not to pursue it or by both parties pursuant to a settlement.

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Discounted Cash Flow (DCF)

The Discounted Cash Flow (DCF) methodology is based on the principle of anticipation i.e., value is created by the anticipation of future benefits. The DCF analysis reflects investment value and market value appraisals, as well as for other purposes such as sensitivity tests.

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Discounted Cash Flows

Discounting is the calculation of the present value of a future sum. Discounting is thus the inverse to capitalisation. Discounting makes it possible to compare sums received or paid out at different dates. Discounting is calculated with the required rate of return of the investor. The discounting formula runs as follows:

Pv = Fv / (1 + i)n

Where: Vn = Future cash flow or value Pv = Present value i = Discount rate or Rate of return on capital per period n = Number of periods that payment shall be differed

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Discounting of bills of exchange

Discounting of bills of exchange is a financing transaction wherein a company remits an unexpired commercial bill of exchange to the bank in return for an advance of the amount of the bill, less interest and fees.

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Divided Co-Ownership

The law provides for two types of co-ownership: divided and undivided. Divided co-ownership, as the name implies, permits the division of a building into fractions. A fraction may belong to one or more persons. Each owner of a fraction has the exclusive ownership of a private portion of the immovable and has an undivided right of ownership, that is, a share proportionate to the relative value of his fraction, in the common portions of the immovable. The common portions belong to all the co-owners.

Each owner of a fraction may hypothecate it (give it as security) to guarantee the repayment of the sums borrowed to purchase it. Each hypothec is separate. Condominium owners are not affected by a neighbour’s hypothecary difficulties.

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Dividend

Payment made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

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Dominant Tenement

Where an easement is appurtenant, it will typically require the existence of two parcels of land, known as tenements. The dominant tenement is the land which benefits from an easement, while the servient tenement is the one which bears the burden of the easement.

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Due Diligence Review

A buyer or a successor has the right to have various areas of to the company verified by his own experts in order to determine if what the seller has said is true, if the goods are truly what he thinks he is buying, and if there are no hidden defects or lawsuits against the company, to name a few. The due diligence review usually covers the following areas: operations, intellectual property, goods, human resources, and the legal, accounting, tax, and environmental aspects.

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Duties on transfers of immovables

Duties on transfers of immovables is a tax collected by the municipality for the transfer of any immovable located within its territory under the provincial legislation. The rate of these duties is set as follows:  0,5% on that part of the basis of imposition which does not exceed $50,000  1% on that part of the basis of imposition which is in excess of $50,000 without exceeding $250,000  1,5% on that part of the basis of imposition which exceeds $250,000

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