Glossary

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There are 62 names in this directory beginning with the letter M.
Majority, Age of
The age at which a person becomes legally competent; generally, 18 years old. Compare: Minor.
Maker
The person who signs a promissory note, promising to repay a debt. Compare: Payee.
Management Agreement
A contract between the owner of property and someone who agrees to manage it.
Manufactured Home
A structure that is trans_portable, is not affixed to real estate, is built on a permanent chassis, and is designed to be used as a dwelling with or without a permanent foun_dation.
Margin
A constant (fixed) amount over an index that determines a lender's yield on an adjustable rate loan. The interest rate of an adjustable rate loan is determined by adding a margin to an index. The size of the margin is typically a function of the index used and the credit worthiness of the borrower. Typical margins on a Prime Rate based loan would be 0.0 to 5.0 so that if the Prime Rate were 8.25% and the margin were 2.0 (typical for an "average" borrower), the interest rate would be 10.25% (8.25
Marginal Land
Land that is of little economic value and barely repays the cost of working it.
Market Data Approach
One of the three main methods of appraisal, in which the sales prices of comparable properties are used to estimate the value of the subject property. Also called the sales comparison approach.
Market Price
1. The current price generally be_ing charged for something in the marketplace. 2. The price actually paid for a property. Com_pare: Value, Market.
Market-Oriented Industry
An industry that requires appropriate transportation facilities for delivery of raw materials and distribution of the finished product.
Marketable Title
A title free from defect.
Master Development Plan
A comprehensive, long-term plan of development for a commu_nity, which is implemented by zoning and other laws. Also called a comprehensive plan or a general plan.
Master Lease
A controlling lease.
Master/Servant Relationship
A legal term for a standard employer/employee relationship.
Material Fact
An important fact; one that is likely to influence a decision.
Maturity Date
The date by which a loan is sup_posed to be paid off in full.
Mechanic's Lien
A lien given by law upon a building or other improvement upon land as security for the payment of labor and materials furnished for improvement.
Megalopolis
An extensive, heavily populated, continuously urban area, including any num_ber of cities.
Merger
1. Uniting two or more separate prop_erties by transferring ownership of all of them to one person. 2. Acquisition by the owner of one parcel of title to one or more adjacent par_cels.
Meridian
An imaginary line running north and south, passing through the earth's poles. Also called a longitude line.
Meridian, Principal
In the rectangular survey system, the main north-south line in a particu_lar grid, used as the starting point in numbering the ranges.
Meridians, Guide
In the rectangular survey system, lines running north-south (parallel to the principal meridian) at 24-mile intervals.
Metes
Measurements
Metes and Bounds Description
A legal de_scription that starts at an identifiable point of beginning, then describes the property's bound_aries in terms of courses (compass directions) and distances, ultimately returning to the point of beginning.
Mill
One-tenth of one cent; a measure used to state property tax rates in some cases. For example, a tax rate of one mill on the dollar is the same as a rate of one-tenth of one percent of the assessed value of the property.
Mineral Rights
Rights to the minerals located beneath the surface of a piece of property.
Minimum Property Requirements (MPRs)
A lender's requirements concerning the physi_cal condition of a building, which must be met before a loan can be approved.
Minor
A person who has not yet reached the age of majority; generally, a person under 18.
MIP
Mortgage insurance premium; especially a premium charged in connection with an FHA-insured loan.
Misrepresentation
A false or misleading state_ment. See Fraud.
MLS
Multiple Listing Service.
Monument
A visible marker (natural or artifi_cial) used in a survey or a metes and bounds description to establish the boundaries of a piece of property.
Mortgage
The instrument securing a note to a piece of property. A note is simply a promise to pay. A mortgage secures that promise, using real estate as the collateral. When someone mortgages their property, they are conveying an interest in their property as security for payment of a debt. (See also "First Mortgage" and "Second Mortgage".).
Mortgage (Open-End)
A mortgage that allows additional money to be borrowed (up to the original loan amount) without refinancing the loan or paying additional financing charges.
Mortgage Balance
see Principal Balance.
Mortgage Banker
An intermediary who origi_nates and services real estate loans on behalf of investors.
Mortgage Broker
An intermediary who brings real estate lenders and borrowers together and negotiates loan agreements between them.
Mortgage Company
A type of real estate lender that originates and services loans on be_half of large investors (acting as a mortgage banker) or for resale on the secondary mort_gage market.
Mortgage Insurance Premium (MIP)
The payment made by a borrower of FHA insured mortgages to provide a reserve that protects lenders against losses from very high loan-to-value loans.
Mortgage Loan
A loan, which is secured by a mortgage lien filed against real property.
Mortgage, Adjustable-Rate (ARM)
A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money. Compare: Loan, Fixed-Rate.
Mortgage, Balloon
A partially amortized mort_gage loan that requires a large balloon payment at the end of the loan term.
Mortgage, Blanket
A mortgage that covers more than one parcel of property.
Mortgage, Budget
A loan in which the monthly payments include a share of the property taxes and insurance, in addition to principal and in_terest; the lender places the money for taxes and insurance in an escrow account.
Mortgage, Chattel
An instrument that makes personal property (chattels) security for a loan. In states that have adopted the Uniform Com_mercial Code, the chattel mortgage has been replaced by the security agreement.
Mortgage, Closed
A loan that cannot be paid off early. See also: Lock-in Clause.
Mortgage, Closed End
A loan that does not allow the borrower to increase the balance owed; the opposite of an open-end mortgage.
Mortgage, Direct Reduction
A loan that re_quires a fixed amount of principal to be paid in each payment; the total payment becomes steadily smaller, because the interest portion becomes smaller with each payment as the prin_cipal balance decreases.
Mortgage, First
The mortgage on a property that has first lien position; the one with higher lien priority than any other mortgage against the property.
Mortgage, Graduated Payment (GPM)
A loan that provides for lower payments in the first years of its term; the payments increase in steps, then level off, typically after three to seven years.
Mortgage, Hard Money
A mortgage given to a lender in exchange for cash, as opposed to one given in exchange for credit.
Mortgage, Junior
A mortgage that has lower lien priority than another mortgage against the same property. Sometimes called a secondary mortgage.
Mortgage, Level Payment
An amortized loan with payments that are the same amount each month, although the portion of the payment that is applied to principal steadily increases and the portion of the payment applied to interest steadily decreases. See: Loan, Amortized.
Mortgage, Open-End
A loan that permits the borrower to reborrow the money he or she has repaid on the principal, usually up to the origi_nal loan amount, without executing a new loan agreement.
Mortgage, Package
A mortgage used in home financing that is secured by certain items of per_sonal property (such as appliances or carpet_ing) in addition to the real property.
Mortgage, Purchase Money
1. When a seller extends credit to a buyer to finance the pur_chase of the property, accepting a mortgage in_stead of cash. Sometimes called a carryback loan. 2. In a more general sense, any loan the borrower uses to buy the security property (as opposed to a loan secured by property the bor_rower already owns).
Mortgage, Satisfaction of
The document a mortgagee gives the mortgagor when the mort_gage debt has been paid in full, acknowledging that the debt has been paid and the mortgage is no longer a lien against the property; should always be recorded.
Mortgage, Senior
A mortgage that has higher lien priority than another mortgage against the same property; the opposite of junior mortgage.
Mortgage, Wraparound
A purchase money loan arrangement in which the seller uses part of the buyer's payments to make the payments on an existing loan (called the underlying loan); the buyer takes title subject to the underlying loan, but does not assume it.
Mortgagee
A lender who accepts a mortgage as security for repayment of the loan.
Mortgagor
A property owner (usually a bor_rower) who gives a mortgage to another (usu_ally a lender) as security for payment of an obligation.
Multiple Listing Service (MLS)
An organiza_tion of brokers who share their exclusive list_ings.
Mutual Agreement
When all parties freely agree to the terms of a contract, without fraud, undue influence, duress, menace, or mistake. Mutual consent is achieved through offer and acceptance; it is sometimes referred to as a "meeting of the minds." Also called mutuality.