Glossary of Terms
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MAINTENANCE COSTS:
The expense of keeping a property in a good state of repair.
MAINTENANCE FEE:
Charge to a unit holder in a condominium or cooperative complex
for that person's share of costs of keeping the common-use portions
of the complex in a good state of repair.
MAJORITY:
1. More than 50%.
2. The age of majority is the age in years at which a community
considers a human being capable of handling his own affairs and
legally liable for his actions.
MALL:
Commonly used to refer to the entire shopping complex but properly
a reference to the pedestrian area of the mall that connects shopping
areas.
MANAGEMENT AGREEMENT:
A contract between an owner of a property and a property management
firm in which the firm accepts periodic payments for acting as supervisor
of the affairs of the property.
MANAGEMENT FEE:
The property manager's compensation.
MANAGEMENT PLAN:
A written document in which the property manager sets out its goals
and the approaches it will use to accomplish those goals in a given
period of time for the property.
MANDATORY DELIVERY COMMITMENT:
A lender's written promise to deliver certain funds at specified
dates upon terms set out in the commitment.
MANUFACTURED HOUSING:
Known as "pre-fab" housing, any dwelling that is assembled
out of components (i.e. walls, floors, roof) constructed off-site
and then brought to the building lot.
MARGIN:
The difference or the added amount. In mortgages, the difference
between the index interest rate and the interest rate charged on
the variable or adjustable rate mortgage. Expressed in the contract
as a percentage (i.e. "prime plus three per cent").
MARGINAL LAND:
Land whose value is limited. The cost of making it capable of producing
income is generally very close to the income it would produce.
MARINA:
A facility located on a body of water which provides docking, storage,
maintenance and other facilities for boats.
MARKET PRICE:
The consideration actually paid for an asset in an arm's-length
transaction.
MARKET RENT:
Also known as economic rent, the amount the owner could charge and
obtain for the lease of a property in the current economic circumstances.
MARKET RENTAL RISK:
The possibility that the market rent for a property will change
due to changing market forces, making a long-term, fixed rent lease
more or less desirable.
MARKET SEGMENTATION:
Analyzing sub-markets within a greater market.
MARKET STUDY:
An analysis of the reaction of the market to influences such as
location, demand, extra-market economic events, etc.
MARKET VALUE:
An estimation of the price that could be obtained for a particular
asset if it were sold in an arm's length transaction on the current
market.
MARKETABLE TITLE:
Ownership of land that is without competing claims or other defects,
such that it could be sold without complication.
MARKETING PLAN:
A written description of how a salesperson intends to advertise
a given property to obtain the best price within a reasonable time.
MASTER ASSOCIATION:
An organization of homeowners in a large condominium or planned
unit development (PUD) which includes representatives from other,
smaller homeowner organizations.
MASTER LEASE:
The dominant lease in a property, under which one or more sub-leases
may exist.
MATERIAL BREACH:
A contravention of the terms of a contract by one of the parties
that is so large that it changes the very nature of the agreement
between the parties and allows the innocent party to treat the contract
as being at an end and pursue legal remedies (recision, damages,
specific performance) from the contravening party.
MATERIAL FACT:
An important fact about one or more of the issues involved in the
contract which, if known to all parties, may result in a different
contract or no contract at all.
MATURITY DATE:
The date upon which a mortgage loan comes due and payable.
MEAN HIGH TIDE:
The level to which the water rose on an average day over a previous
period of time (years or decades).
MEANDER LINES:
A vivid description of the measurement used in surveying to set
out the boundary of a water course (i.e. a stream or river).
MECHANIC'S AND MATERIALMAN'S LIENS:
A claim against property that arises as a statutory right of any
person who supplies work or materials to a property and is not compensated
for that work. See also " construction lien ".
MEETING OF THE MINDS:
In order for a contract to be enforceable, the parties to it must
come to a common understanding of the terms of their agreement.
If no such common understanding has occurred with regard to a material
clause in the contract, the contract may be voidable. This common
understanding is referred to at common law as a "meeting of
the minds".
MEGALOPOLIS:
A spiffy new term for urban sprawl, situations where the expansion
of several cities in a particular area has created one continuous
city, even if the different parts retain their own name (Boston,
New York, Philadelphia, etc.).
MENACE:
Coercion, pressure. A threatening act which is aimed at forcing
a person to act against their wishes.
MERGER:
The combining of two or more independent bodies into a single body.
MERIDIANS:
Used in government survey method, lines which form the north-south
portion of the grid.
METER:
Also known as metre. The metric system's basic unit for linear measurement,
equal to 39.37 inches. 1/10th of a meter is a decimeter; 1/100th
is a centimeter; 1/100th is a millimeter.
METES AND BOUNDS:
An older way of describing land in registered instruments. Starting
at a recognizable point (the meeting of two roads, the corner of
a lot), the description then describes the boundaries of the land
by indicating distances and directions for each boundary (i.e. "South
100 feet" or "South 73 degrees, five minutes west for
a distance of 100 feet"), returning at the end of the description
to the beginning point.
METROPOLITAN AREA:
The land which is located in a city and in the surrounding areas
which can be said to be still part of the economic or political
sphere of the city.
MIDDLEMAN:
A slang description for a person who acts to bring together the
parties to a transaction.
MILE:
Linear measurement equaling 5,280 feet, 1,760 yards, 1,609 kilometers,
or 8 furlongs. Note, a nautical mile is equal to 6,080 feet.
MILITARY CLAUSE:
A term of a residential lease which allows a tenant who is a member
of the military to terminate the lease upon being transferred to
another place without suffering any penalty.
MILL:
10 per cent of a penny. In many jurisdictions, property tax assessments
are based on a mill rate.
MINERAL DEED:
An instrument which transfers to the purchaser only an interest
in the subsurface portion of the property, while retaining to the
vendor the surface and air rights .
MINERAL LEASE:
A contract between the owner of a property and another party allowing
the other party to explore and exploit any mineral deposits found
on the property for a limited period of time in return for a periodic
payment.
MINERAL RIGHTS:
The legal interest in the valuable items found below the surface
of a property.
MINIMUM DOWNPAYMENT:
The least amount of money a purchaser can provide toward the purchase
price of a house under a mortgage loan program.
MINIMUM LOT SIZE:
The smallest size allowable for an independent parcel of property
under a zoning by-law or ordinance provision.
MINIMUM PAYMENT:
The lowest amount a borrower is allowed to pay toward a loan, line
of credit or other debt in a given period of time.
MINIMUM PROPERTY STANDARDS:
The bare essentials in the way of construction and lot location
required by the Federal Housing Administration (FHA) before it will
underwrite a mortgage on a residential property.
MINIMUM RENT:
The lowest amount the landlord will accept under a lease contract
with a variable rent.
MINIMUM-GUARANTEED PERCENTAGE LEASE:
A lease whereby the landlord is paid periodic rent as a percentage
of the gross (or net) sales of the tenant of the premises but where
the tenant agrees that the rental payments shall not drop below
a specified amount.
MINOR:
A person who is too young to be considered legally competent according
to the laws of the jurisdiction.
MISNOMER:
An error regarding a name.
MISREPRESENTATION:
A statement of a fact that turns out to be false. May be innocent,
negligent or fraudulent.
MISTAKE:
An innocent error. If a mistake is made by all parties to a contract
about a material fact, the contract may be voidable.
MIXED-USE COMMERCIAL PROJECT:
A development which is designed to mix two or more "uses"
of land together (i.e. a shopping center which offers office space
for dentists, etc.)
MOBILE HOME:
A dwelling that sits on wheels and may be moved, often under its
own power.
MOBILE HOME PARK:
An area specifically designed to allow for permanent or semi-permanent
stationing of mobile homes.
MODEL HOME:
A dwelling built first by a developer to allow potential purchasers
to see what the finished product will look like once the other homes
in the development are completed.
MODIFICATION:
A change to the terms of a contract.
MODULAR HOUSING:
See " manufactured housing ".
MONUMENT:
Any kind of marker to indicate the boundary or corner of a parcel
of land, used by surveyors.
MONTHLY DEBT SERVICE:
The periodic payments required to remain current on all outstanding
loans.
MONTHLY FIXED INSTALLMENT:
Periodic payment that is applied toward accumulated interest and
reduction of principal.
MONTHLY HOUSING EXPENSE:
The total of the costs of maintaining a home per month, including
financing, realty taxes and house insurance.
MONTHLY TOTAL EXPENSES:
The total when monthly housing expense is added to monthly debt
service.
MORATORIUM:
A temporary ban or halt to a specific activity.
MORE OR LESS:
A term used in metes and bounds descriptions and in Agreements between
Vendors and Purchasers of land to indicate that the measurement
given may not be exact.
MORTGAGE:
A loan which is secured against property (i.e. registered on title
as a claim or encumbrance on the property). Often used to purchase
the property itself.
MORTGAGE BACK:
Also known as a " vendor take-back mortgage ". Financing
of a purchase of property whereby the vendor accepts only a portion
of the purchase price up front and accepts a mortgage (with periodic
payments and interest chargeable) for the remainder.
MORTGAGE BANKER:
A firm that offers mortgages for property purchases but, at times,
may require financial support from larger institutions to help cover
the outlay of cash.
MORTGAGE BROKER:
A middleman who serves to bring borrowers together with lenders.
Offers the service of doing the shopping for the borrower while
often collecting a fee from the chosen lender rather than from the
borrower.
MORTGAGE COMMITMENT:
See " commitment letter ".
MORTGAGE CORRESPONDENT:
An authorized agent of a lender for a geographic area.
MORTGAGE DISABILITY INSURANCE:
A policy of insurance which promises to pay periodic mortgage payments
for the borrower during any future period that borrower may be disabled
from working and, therefore, incapable of making the payments himself.
MORTGAGE INSURANCE:
A policy of insurance which promises to pay out the amount owing
in the event that the borrower defaults.
MORTGAGE INTEREST DEDUCTION:
A tax break for people who pay mortgage interest on their homes.
MORTGAGE LIFE INSURANCE:
A policy of insurance which promises to pay out the remaining balance
owing on a mortgage should the borrower die. The amount payable
by the insurer declines as the mortgage is paid down and the policy
ends upon the paying out of the mortgage.
MORTGAGE LOAN SERVICING:
The lender's actions in collecting mortgage payments, allocating
payments to principal, interest and escrow accounts, paying out
property taxes and insurance over the life of the loan.
MORTGAGE LOAN UNDERWRITING:
The action of reviewing an application for a loan and then advising
the lender as to the risk factor in making the loan.
MORTGAGE PROGRAM:
The bundle of features of a particular kind of mortgage offered
to the public.
MORTGAGE VALUE:
The estimate worth of a particular asset which is established for
the purposes of obtaining financing secured against that asset.
MORTGAGEE:
The lender in a mortgage transaction. Also known as " chargee
".
MORTGAGEE IN POSSESSION:
A lender that has taken over control and occupancy of a property
upon default of the borrower to collect income from the property
and prepare for foreclosure and sale.
MORTGAGOR:
The borrower, purchaser or homeowner in a mortgage transaction.
Also known as "chargor".
MOST PROBABLE SELLING PRICE:
An estimation of the price a property is most likely to realize
in a given market.
MULTI-DWELLING UNITS:
A property which may have one owner but offers a number of homes
for separate people or families.
MULTIFAMILY HOUSING:
Similar to multi-dwelling units, a building which features two or
more family dwellings within the same structure. May require special
zoning.
MULTIPLE DWELLING:
Also known as multi-dwelling unit.
MULTIPLE LISTING SERVICE (MLS):
A service created and run by real estate professionals which gathers
all of the property listings into a single place so that purchasers
may review all available properties from one source. The MLS also
deals with commission splitting and other relations between brokers
and agents.
MUNICIPAL ADDRESS:
The city, street and number on the street by which a property is
known. Also known as "mailing address" but not the same
as "legal description".
MUNICIPAL ORDINANCE:
A rule set down by a local government.
MUNICIPALITY:
A generic name for any organized local government (a city, town,
etc.).
MUNIMENTS OF TITLE:
Written documents which may be used to prove an owner's title to
a property.
MUTUAL ASSENT:
A shared acceptance by two or more parties.
MUTUAL RESCISSION:
The act of ending a contract by obtaining the agreement of all parties
to the contract to treat the contract as being at an end.
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