de facto (redirected from De-facto standard)
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Existing in actual fact although not by official recognition.
Existing in fact, but not by legal standard. In business, one occasionally makes reference to "de facto" monopolies
in situations where alternatives to a certain brand may exist, but the brand has such a large market share
that the alternatives may as well not exist. Likewise, some analysts of the 2008 recession have discussed the "de facto" nationalization
of the banking industry, in which some governments, notably the British, bought some banks outright and implicitly guaranteed the existence of all other banks.
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In fact, in actuality, as things are really done. The phrase is used to express a state of affairs or condition that might not be technically legal, but which has the same effect as the legal condition. Here are two examples:
• When an apartment complex allowed the power to be disconnected for nonpayment and failed to secure a reconnection, it amounted to a de facto eviction of all the tenants (also called a constructive eviction).
• The IRS has ruled that a long-term lease of property with the right to purchase for $1 at the
end of the term is not a true lease, but a de facto installment sale.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.