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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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