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Real Estate Dictionary M
"M.A.I." - '"mortgage commitment"
We try to provide as much information as possible to buyers of Ocala Real Estate. These terms and definitions apply pretty much nation wide, and we try to update with terms specifically relating to Florida Real Estate as soon as we come across something we've missed. We welcome your comments and suggestions!
M.A.I.:
Member of the Appraisal Institute. Designates a person who is a member of
the American Institute of Real Estate Appraisers of the National Association of
Realtors.
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").
MARGIN OF SECURITY:
The difference between the amount of the mortgage loan(s) and the
appraised value of the property.
MARGINAL LAND:
Land which barely pays the cost of working or using.
MARINA:
A facility located on a body of water which provides docking, storage,
maintenance and other facilities for boats.
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MARKET DATA APPROACH:
One of the three methods in the appraisal process. A means of comparing
similar type residential properties, which have recently sold, to the subject
property.
MARKET PRICE:
The price paid, regardless of pressures, motives or intelligence.
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:
1. The price at which a willing seller would sell and a willing buyer
would buy, neither being under abnormal pressure.
2. As defined by the courts, is the highest price estimated in terms of money
which a property will bring if exposed for sale in the open market allowing a
reasonable time to find a purchaser with knowledge of property's use and
capabilities for use.
MARKETABLE TITLE:
Merchantable title; title free and clear of objectionable liens or
encumbrances.
MARKETING PLAN:
A written description of how a salesperson intends to advertise a given
property to obtain the best price within a reasonable time.
MARKUP:
A percentage of the cost of an item added to the cost to compute the
selling price. Includes expenses and profit.
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.
MASTER PLAN:
General plan for the future development of a community.
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:
A fact is material if it is one which the agent should realize would be
likely to affect the judgment of the principal in giving his consent to the
agent to enter into a particular transaction on the specified terms.
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 LIENS:
Liens placed on property by laborers and material suppliers who have
contributed to the work of improvement.
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 large geographical area composed of a group of adjacent cities.
MENACE:
A threat to commit duress.
MERGER:
The combining of two or more independent bodies into a single body.
MERIDIANS:
Imaginary north-south lines which intersect base lines to form a starting
point for the measurement of land.
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:
A term used in describing the boundary lines of land, setting forth all
the boundary lines together with their terminal points and angles.
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:
5280 lineal 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:
All persons under the age of majority, usually 18.
MISNOMER:
An error regarding a name.
MISPLACED IMPROVEMENTS:
Improvements on land which do not conform to the most profitable use of
the site.
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:
A fixed object and point established by surveyors to establish land
locations.
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:
The temporary suspension, usually by statute, of the enforcement of
liability for debt.
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:
An instrument recognized by law by which property is hypothecated to
secure the payment of a debt or obligation; procedure for foreclosure, in event
of default, is established by statute.
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.