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Marketing Clients:
Plastic Injection Moulding
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Real Estate Dictionary/Glossary A,
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N.B. This glossary is provided with the understanding that the author is not
providing any legal, or other professional services. If legal or real estate
advice is required, the services of a competent professional person should be
sought.
Maker
The maker of a cheque is known as the drawer. (See payee)
Manifest System
Tracking of hazardous waste from "cradle to grave" (generation through
disposal), with accompanying documents known as "manifests." (See hazardous
waste)
Maintenance Charges
Monthly or annual charges assessed in a condominium, planned united development,
or cooperative development to cover operational costs.
Management
Refers to the amount of personal or hired time, it takes to run the investment.
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.
Management Plan
The financial and operational strategy for the ongoing management of a property.
It is based on market analysis, a property analysis and the owner's goals. (See
market analysis, property analysis)
Manufactured Home
A structure (transportable in one or more sections) when in the traveling mode,
is eight body feet or more in width, or 40 body feet or more in length, or, when
erected on site, is 320 or more square feet. It is built on a permanent chassis
and designed to be used as a dwelling with or without a permanent foundation
when connected to the required utilities, and includes the plumbing, heating,
air conditioning, and electrical systems contained therein. (H & S Code § 18007)
Margin
In an adjustable-rate loan, the amount added to the index rate that represents
the lender's cost of doing business (including costs, profits and risk of loss
of the loan). Generally the margin stays constant during the life of the loan.
(See adjustable-rate loan, index rate)
Market
A place where goods can be bought and sold and a price established.
Market Analysis
A regional and neighbourhood study of economic, demographic and other factors
made to determine supply and demand, market trends, and other factors important
to leasing and operating a specific property.
Market Approach
A method of pricing single-family rental homes and condos using comparable
market data. When pricing multiple unit rental properties, the income approach
is probably better. (See comparative market analysis, net income approach)
Market-Data Approach
Estimating a property's value based on a comparison of the property with similar
properties in the same locale that have sold recently. Also known as the direct
sales comparison approach. (See appraisal)
Marketable Title
Good or clear title, reasonably free from the risk of litigation over possible
defects.
Market Value
The most probable price a property should bring in a competitive and open market
under all conditions requisite to a fair sale. Such such conditions include the
assumption that the buyer and seller acted prudently and knowledgeably and that
the price is not affected by undue stimulus.
Masonry
Any construction material involving bricks/blocks and mortar or related
materials.
Master Deed
The principal conveyance document used by the owners of land on which
condominiums are located. (See fictitious deeds of trust)
Master Plan
A comprehensive plan to guide the long-term physical development of a particular
area.
Material Fact
Any fact that is relevant to a person making a decision. Agents must also
disclose to buyers material facts about the condition of the property, such as
known structural defects, building code violations and hidden dangerous
conditions. Brokers are often placed in a no-win situation of trying to evaluate
whether a certain fact is material enough that it needs to be disclosed to a
prospective buyer, such as the fact that a murder occurred on the property 10
years ago or the fact that the neighbors throw loud parties.
Mean
The average of all items included within a group, calculated by dividing the sum
of the individual items, or variates, by the number of variates. (See variate)
Mechanics' Lien
A statutory lien in favour of a building contractor (architects and designers in
some states) to secure payment for materials supplied and services rendered in
the improvement, repair or maintenance of real property. (See lien)
Median
The middle figure in a set of numbers.
Mediation
A process where a neutral third party intervenes between the disputing parties
to reach a satisfactory solution.
Mentor Programme
A training program in a real estate office wherein newly-hired agents assist
successful, knowledgeable salespersons for a period of time.
Merger
The joining of a lesser right with a greater right so that the lesser right is
lost.
Meridian
One of a set of imaginary lines running north and south used by surveyors for
reference in locating and describing land under the government survey method of
property description.
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.
Mineral Rights
Rights to subsurface land and profits. Normally, when real property is conveyed,
it includes everything above and below the surface of the land, except where
specified by the grantor.
Misdemeanor
Offences less serious than felonies and generally punishable by a fine or
imprisonment less than one year.
Misrepresentation
A false statement or concealment of a material fact made with the intention of
inducing some action by another party.
Mistake
An error or misunderstanding. A contract is voidable if there is a mistake that
is mutual, material, unintentional and free from negligence, such as both
parties honestly contracting for a different lot in a subdivision (mistake of
fact). Innocent mistakes seldom serve to void a contract. A party cannot claim
"mistake" to get out of a contract on the basis that he or she did not read the
contract he or she signed and was therefore mistaken as to its material terms;
neither ignorance nor poor judgment is a mistake of fact.
Mitigation
Measures taken to reduce adverse impacts on the environment. To make less
severe, as in the "mitigation" of enviromental hazards.
Mixed-Use Developments (MUDs)
MUDs combine office space, stores, theatres and apartment units in a single
community. MUDs usually contain and offer laundry facilities, restaurants, food
stores, valet shops, beauty parlours, barbershops, swimming pools and other
attractive and convenient features. (See high-rise developments)
Mobile-Home
Prefabricated trailer-type housing units that are semipermanently attached to
land, which is either the owner's fee land or a leasehold, such as in a
mobile-home park. Mobile homes are usually affixed to a concrete foundation and
connected to utilities. Although they may not be as mobile as the word implies,
they may be removed from such attachments and hauled to a new location. In this
respect mobile homes possess the features of both real and personal property.
They are like real property when the units are attached to the earth's surface,
and like personal property when they are detached and moved. The courts,
however, generally consider a mobile home as a fixture and thus treat it as real
property.
Mobile-Home Loan
A mortgage loan on a large mobile-home, usually drawn for a shorter term than
conventional mortgages.
Mobile-Home Park
An area zoned and set up to accommodate mobile homes by providing water hookups
and sewage disposal for each home. The mobile-home park contains all utilities,
streets, parking and amenities. Mobile-home parks are also called trailer parks.
Mode
The most frequently occurring variate. (See variate)
Modular Housing
A relatively recent concept in home construction, aimed at producing housing
more economically and faster through prefabricating processes; also called
prefabricated housing. Modular methods expedite construction because the house
itself can be built in the factory while the building site is being prepared,
thus potentially eliminating costly delays. Some courts have held that the sale
of an unattached modular home is the sale of personal property, and thus no
written listing or real estate license is required to earn a commission.
Moulds or Molds
Molds or moulds are simple, microscopic organisms that are present virtually
everywhere both indoors and outdoors. Moulds are fungi and are needed to break
down dead material and recycle nutrients in the environment. For moulds to grow
and reproduce they need only a food source such as leaves, wood, paper, or dirt
- and moisture.
Monetary Policy
Governmental regulation of the amount of money in circulation through such
institutions as the Federal Reserve Board. (See Federal Reserve)
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.
Moratorium
1.A temporary suspension of payments due under a financial obligation in order
to help a distressed borrower recover from financial difficulties and avoid
default and foreclosure. 2. A temporary suspension of issuing building permits.
(See workout)
Moratorium Cheque
A legal document used to secure the performance of an obligation. The term
mortgage, which is derived from the French words mort meaning "dead" and gage
meaning "pledge," is appropriate in that the pledge is extinguished only after
the debt is paid. In the usual real estate transaction, the buyer seeks to
borrow money to pay the seller the difference between the down payment and the
purchase price. When the lender (mortgagee) lends the money, the buyer/borrower
(mortgagor) is required to sign a promissory note for the amount borrowed and to
execute a mortgage to secure the debt. The purpose of the mortgage note is to
create a personal liability for payment on the part of the mortgagor; the
purpose of the mortgage is to create a lien on the mortgaged property as
security for the debt.
Mortgage-Backed Security (MBS)
A security guaranteed by pools of mortgages and used to channel funds from
securities markets to housing markets. Ginnie Mae has a popular MBS program
recognized for its low risk and high yield. The Ginnie Mae MBS security is a
pool of VA and FHA mortgages put together as a bond. Freddie Mac and Fannie Mae
also have MBS programs. (See FHA, Fannie Mae, Freddie Mac, Ginnie Mae, VA loan)
Mortgage Banker
A person, corporation or firm (not otherwise in banking and finance) that
normally provides its own funds for mortgage financing as opposed to savings and
loan associations or commercial banks that use other people's money - namely
that of their depositors--to originate mortgage loans. Although some mortgage
bankers do supply permanent long-term financing, the majority specialize in
supplying short-term and interim financing, either through their own resources
or by borrowing from commercial sources.
Mortgage Broker/Company
A person or firm that acts as an intermediary between borrower and lender; one
who, for compensation or gain, negotiates, sells or arranges loans and sometimes
continues to service the loans; also called a loan broker. Loans originated by
the mortgage broker are closed in the lender's name and are usually serviced by
the lender. This is in contrast to mortgage bankers, who not only close loans in
their own names but continue to service them as well. Many mortgage brokers are
also licensed as real estate brokers and provide these financing services as
supplements to their realty services.
Mortgage Insurance
A kind of insurance policy that will pay off the mortgage balance in the event
of death, and in some policies, disability. Premiums are paid with the regular
monthly mortgage payment.
Mortgage Insurance Premiums (MIP)
Most FHA loans require the borrower to pay two mortgage insurance premiums one
upfront paid at closing; the second is an annual premium based on the loan
balance each year.
Mortgage Lien
A lien or charge on the property of a mortgagor that secures the underlying debt
obligations. (See lien)
Mortgage Loan Disclosure Statement
Borrower disclosure mandated by Article 7 of the Real Estate Law. (See Article
7)
Mortgage Revenue Bonds
A type of tax-exempt industrial development bond offered by state and local
governments through their housing financing agencies. (See industrial
development bonds)
Mortgagee
In a mortgage transaction, the party who receives and holds a mortgage as
security for a debt, the lender. A lender or creditor who holds a mortgage as
security for payment of an obligation.
Mortgagee's Title Insurance
An insurance policy protecting the lender for the amount of the loan in the
event of a future title dispute. (See owner's title insurance, title insurance)
Mortgagor
In a mortgage transaction, the buyer/borrower is the mortgagor. The mortgagor is
required to sign a promissory note for the amount borrowed and to execute a
mortgage to secure the debt. The mortgage note creates a personal liability for
payment on the part of the mortgagor. (See mortgage, promissory note)
Multiclass Mortgage Securities
Short- and long-term mortgage securities, with or without pass-through
privileges. (See pass-throughs)
Multi-Lender Rule Loans
Loans involving 10 or fewer investors regulated by the Corporation Commissioner.
Multiperil Policies
Many insurance companies offer multiperil policies for apartment and commercial
buildings. Such a policy offers the property manager an insurance package that
includes standard types of commercial coverage, such as fire, hazard, public
liability and casualty. Special coverage for earthquakes and floods is also
available.
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.
Municipal Bonds
Bonds issued to finance public improvements such as parks, schools and urban
renewal projects.
Must-Buy Buyers
Buyers looking for properties that meet specific needs.
Must-Sell Sellers
A highly motivated or desperate seller.
Mutual Consent
A meeting of the minds; a mutual assent of the parties to the formation of the
contract.
Mutual Mortgage Insurance
Insurance premiums and other specified FHA revenues are paid into one of four
FHA funds. Losses due to foreclosure are met from these funds.
Real Estate Dictionary/Glossary A,
B,
C,
D,
E,
F,
G,
H,
I,
J,
K,
L,
M,
N,
O,
P,
Q,
R,
S,
T,
U,
V,
W,
X,
Y,
Z
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