Management agreement
A contract between the owner of income property and
a management firm or individual property manager that
outlines the scope of the manager's authority.
Market
A place where goods can be bought and sold and a price
established.
Marketable title
Good or clear title, reasonably free from the risk of
litigation over possible defects.
Market value
The most probable price property would bring in an arm's-length
transaction under normal conditions on the open market.
Master plan
A comprehensive plan to guide the long-term physical
development of a particular area.
Mandatory continuing education (MCE)
The State of Texas requires that its licensed real estate
brokers, and salesmen (who have met their SAE requirement),
attend at least 15 hours of certified real estate education
courses before each license renewal (every two years).
At least six of the 15 hours must be in legal topics.
Manufactured home
A structure built in a factory, that is later shipped
to, and placed on, the homesite. The term can apply
to both mobile homes and pre-fab homes.
Margin
An amount, usually a percentage, which is added to the
index to determine the interest rate for adjustable
rate mortgages.
Marginal land
Property which is barely profitable to use.
Market approach to value
An estimate of value based on the actual sales prices
of comparable properties. Contrast with cost approach
to value and income approach to value.
Master-planned community
A large scale, mixed use, real estate development that
follows a long term, comprehensive plan. Master-planned
communities typically blend different price ranges of
residential neighborhoods with some commercial properties
designed to serve the residents' needs. Residential
properties may include patio homes, townhouses, condominiums
and apartment complexes in addition to neighborhoods
of single-family homes. Likewise, multiple home builders
are included in the construction of the various neighborhoods.
Commercial development can consist of retail strip centers
ans shopping malls, restaurants, entertainment venues
and office buildings.
Margin
For an adjustable-rate mortgage (ARM), the amount that
is added to the index to establish the interest rate
on each adjustment date, subject to any limitations
on the interest rate change.
Master association
A homeowners' association in a large condominium or
planned unit development (PUD) project that is made
up of representatives from associations covering specific
areas within the project. In effect, it is a "second-level"
association that handles matters affecting the entire
development, while the "first-level" associations
handle matters affecting their particular portions of
the project.
Maturity
The date on which the principal balance of a loan, bond,
or other financial instrument becomes due and payable.
Maximum financing
A mortgage amount that is within 5 percent of the highest
loan-to-value (LTV) percentage allowed for a specific
product. Thus, maximum financing on a fixed-rate mortgage
would be 90 percent or higher, because 95 percent is
the maximum allowable LTV percentage for that product.
Maturity
The date on which the principal balance of a loan, bond,
or other financial instrument becomes due and payable.
Mechanic's lien
A statutory lien created in favor of contractors, laborers
and materialmen who have performed work or furnished
materials in the erection or repair of a building.
Meridian
One of a set of imaginary lines running north and south
and crossing a base line at a definite point, used in
the rectangular (government) survey system of property
description.
Metes-and-bounds description
A legal description of a parcel of land that begins
at a well-marked point and follows the boundaries, using
directions and distances around the tract, back to the
place of beginning.
Mediation
A dispute resolution method designed to help warring
parties resolve their own dispute without going to court.
In mediation, a neutral third party (the mediator) meets
with the opposing sides to help them find a mutually
satisfactory solution. Unlike a judge in her courtroom
or an arbitrator conducting a binding arbitration, the
mediator has no power to impose a solution. No formal
rules of evidence or procedure control mediation; the
mediator and the parties usually agree on their own
informal ways to proceed.
Metes and bounds
A system of land description using distance (metes)
and angles/compass directions (bounds), beginning and
ending at the same point. Contrast with government survey
and recorded plat method.
Merged credit report
A credit report that contains information from three
credit repositories. When the report is created, the
information is compared for duplicate entries. Any duplicates
are combined to provide a summary of a your credit.
Mill
One-tenth of one cent. Some states use a mill rate to
compute real estate taxes; for example, a rate of 52
mills would be $0.052 tax for each dollar of assessed
valuation of a property.
Minor
Someone who has not reached the age of majority and
therefore does not have legal capacity to transfer title
to real property.
Mid-rise
A 4-story to 8-story tall building that contains residential
apartment or condominium units. While not offering the
panoramic views of a high-rise, mid-rise buildings can
offer comparable levels of amenities and services. Building
features may include 24-hour concierge service, swimming
pools, spas, saunas, tennis courts, exercise areas,
and party rooms. Security is enhanced at these buildings
by the manned entry desks and limited access, covered
parking garages.
Mineral rights
An ownership interest in the minerals contained in a
particular parcel of land, with or without ownership
of the surface of the land. The owner of mineral rights
is usually entitled to either take the minerals from
the land himself or receive a royalty from the party
that actually extracts the minerals.
Minimum payment
The minimum amount that you must pay, usually monthly,
on a home equity loan or line of credit. In some plans,
the minimum payment may be "interest only,"
(simple interest). In other plans, the minimum payment
may include principal and interest (amortized).
Minority
As defined in the Civil Rights Act of 1968 as part of
the Fair Housing Laws "'minority' means any group,
or any member of a group, that can be identified either:
(1) by race, color, religion, sex, disability, or national
origin; or (2) by any other characteristic (such as
familial status) on the basis of which discrimination
is prohibited by a federal, state, or local fair housing
law.
Misrepresentation
A false statement, or concealment, of material fact
with the intention of inducing action of another.
MLS (Multiple Listing Service)
A means by which agents are informed of the properties
offered for sale by other agents.
Monetary policy
Governmental regulation of the amount of money in circulation
through such institutions as the Federal Reserve Board.
Month-to-month tenancy
A periodic tenancy under which the tenant rents for
one month at a time. In the absence of a rental agreement
(oral or written) a tenancy is generally considered
to be month to month.
Monument
A fixed natural or artificial object used to establish
real estate boundaries for a metes-and-bounds description.
Mortgage
A conditional transfer or pledge of real estate as security
for the payment of a debt. Also, the document creating
a mortgage lien.
Mortgage banker
Mortgage loan companies that originate, service and
sell loans to investors.
Mortgage lien
A lien or charge on the property of a mortgagor that
secures the underlying debt obligations.
Mortgagor
A borrower in a mortgage loan transaction.
Mobile home
A type of manufactured home, that is transported to
the home site using wheels attached to the structure.
Mobile homes come in various widths and lengths, and
maybe composed of one to three pieces. A one piece home
is called a "single-wide", while a house that
is joined together from two halves is called a "double-wide".
Recently, "triple-wides" have appeared, and
become as the largest mobile homes available. Most sections
are between 14 and 16 feet wide, and 54 to 80 feet in
length. Mobile homes do not require any foundation or
substructure. They sit up off the ground, with skirting
used around the base to hide the wheel and jacks. While
it is possible to tie down a mobile home to a piece
of land, using straps and screw-in anchors, the structures
are very susceptible to high winds and tornados.
Mortgage Insurance
An insurance plan that protects the lender if the borrower
does not repay a loan. Mortgage insurance is required
when a home buyer makes less than a 20% down payment
at the time of purchase. Private mortgage insurance
(PMI) covers conventional (fixed-year, fixed-rate) loans.
The Federal Housing Administration charges a mortgage
insurance premium (MIP) on FHA loans.
Month-to-month tenancy
A rental agreement that provides for a one-month tenancy
that is automatically renewed each month unless either
tenant or landlord gives the other the proper amount
of written notice (usually 30 days) to terminate the
agreement. Some landlords prefer to use month-to-month
tenancies because it gives them the right to raise the
rent after giving proper notice. This type of rental
also provides a landlord with an easy way to get rid
of troublesome tenants, because in most states month-to-month
tenancies can be terminated for any reason. It is also
common for leases to revert to month-to-month tenancies
at the end of the original lease period, if another
lease has not been signed.
Monument
A fixed object or point, either natural or man-made,
used in making a survey.
Modification
The act of changing any of the terms of the mortgage.
Money market account
A savings account that provides bank depositors with
many of the advantages of a money market fund. Certain
regulatory restrictions apply to the withdrawal of funds
from a money market account.
Money market fund
A mutual fund that allows individuals to participate
in managed investments in short-term debt securities,
such as certificates of deposit and Treasury bills.
Monthly fixed installment
That portion of the total monthly payment that is applied
toward principal and interest. When a mortgage negatively
amortizes, the monthly fixed installment does not include
any amount for principal reduction.
Monthly payment mortgage
A mortgage that requires payments to reduce the debt
once a month.
Mortgage insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance,
either to a government agency such as the Federal Housing
Administration (FHA) or to a private mortgage insurance
(MI) company.
Mortgage life insurance
A type of term life insurance often bought by mortgagors.
The amount of coverage decreases as the principal balance
declines. In the event that the borrower dies while
the policy is in force, the debt is automatically satisfied
by insurance proceeds.
Multidwelling units
Properties that provide separate housing units for more
than one family, although they secure only a single
mortgage.
Multifamily mortgage
A residential mortgage on a dwelling that is designed
to house more than four families, such as a high-rise
apartment complex.
Multidwelling units
Properties that provide separate housing units for more
than one family, although they secure only a single
mortgage.
Modification
Occasionally, a lender will agree to modify the terms
of your mortgage without requiring you t refinance.
If any changes are made, it is called a modification.
Mortgage Constant
The factor used for rapid computation of the annual
payment needed to amortize a loan.
Mortgage Insurance Premium
The amount paid by a mortgagor for mortgage insurance,
either to a government agency such as the Federal Housing
Administration (FHA) or to a private mortgage insurance
(MI) company.
Mortgage Life and Disability Insurance
A type of term life insurance often bought by borrowers.
The amount of coverage decreases as the principal balance
declines. Some policies also cover the borrower in the
event of disability. In the event that the borrower
dies while the policy is in force, the debt is automatically
satisfied by insurance proceeds. In the case of disability
insurance, the insurance will make the mortgage payment
for a specified amount of time during the disability.
Be careful to read the terms of coverage, however, because
often the coverage does not start immediately upon the
disability, but after a specified period, sometime forty-five
days.
Multi-dwelling Units
Properties that provide separate housing units for more
than one family, although they secure only a single
mortgage.
Multiperil policies
Insurance policies that offer protection from a range
of potential perils, such as those of a fire, hazard,
public liability and casualty.
Multiple-listing clause
A provision in an exclusive listing for the authority
and obligation on the part of the listing broker to
distribute the listing to other brokers in the multiple-listing
organization.
Multiple listing service (MLS)
A marketing organization composed of member brokers
who agree to share their listing agreements with one
another in the hope of procuring ready, willing and
able buyers for their properties more quickly than they
could on their own. Most multiple-listing services accept
exclusive-right-to-sell or exclusive agency listings
from their member brokers.
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