Real Estate Dictionary

M

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MADE-LAND

Artificially formed land, either by filling or dredging.

MAGISTRATE

Any civil public officer. Most commonly used to designate an inferior judicial officer, such as a justice of the peace, police justice, etc.

MAGISTRATE'S COURT

Court having jurisdiction over minor matters (small claims), and usually not a court of record.

MAGNESITE FLOORING

A synthetic floor, floated approximately 1'/2 inches thick, over a concrete floor. Composed of powdered magnesite, magnesium-chloride solution and fillers. Also used for outside steps in areas where cold is not severe.

M.A.I. (MEMBER APPRAISAL INSTITUTE)

The designation given to a member of the American Institute of Real Estate Appraisers. A designation earned through experience, education, and examination.

MAIN

A large conduit or pipe, carrying electricity, sewage, gas, etc., to or from branch lines.

MAIN CIRCUIT

The principal circuit which feeds electric current into smaller circuits (branches) for distribution where needed.

MAINTENANCE

Keeping a property in condition to efficiently serve its intended purpose.

MAINTENANCE FEE

As applied to condominiums and planned developments, the amount charged each unit owner to maintain the common area. Usually a monthly fee paid as part of the budget.

MAINTENANCE RESERVE

Money reserved to cover anticipated maintenance costs.

MAJORITY

The age at which a person is no longer a minor, and is legally entitled to contract and enjoy civic rights, such as voting.

MAKER

One who executes (signs) as the maker (borrower) of a note.

MALL

(1) A shaded walkway or promenade. Modernly, the pedestrian area of a shopping center. May be open or enclosed. (2) A strip between two travelways; may be landscaped or paved. Also called a median strip.

MANAGEMENT

(See: Property Management).

MANAGEMENT AGREEMENT

(See: Property Management Agreement).

MANAGEMENT FEE

The amount paid for property management or the estimated value of such management if owner managed or the building is not yet built.

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.

MANDAMUS

Latin for "we command". A writ issued by a superior court ordering an inferior court, corporation, or individual, to do or refrain from doing specific acts. The main importance to real estate is that it is a writ commanding a governmental body to do something, such as issue a building permit.

MANSARD ROOF

A four sided roof, each side having two separate slopes of different degree; the lower slope is at a much steeper angle than the upper slope.

MANTEL

(1) The lintel of a fireplace opening, constructed by a post and lintel method. May be of stone, a heavy beam, or other material of strength. (2) A decorative shelf above a fireplace opening, not loadbearing.

A lot upon which construction of a building may begin. Having all off-site improvements and approvals of government agencies.

MAPS AND PLATS

(See: Plat).

MARBLE

A hard, single or multicolored limestone. In construction, used in place of tile in more expensive structures.

MARGINAL

An investment not considered strong. One which barely supports itself.

MARGINAL LAND

(1) Any income producing land which barely covers expenses. (2) Land which is clearly not the best for an intended purpose, but may be adequate.

MARGIN OF SECURITY

[See: Equity (2)].

MARINA

A small harbor or basin, having docks, supplies, and maintenance services for boats.

MARK

An "X" or other symbol used by one who cannot write his or her name. Modernly not used often and laws as to the validity of using a mark should be checked.

MARKET DATA APPROACH

Appraising the value of a property by comparing the price of similar properties (comparables) recently sold. The degree of similarity (physical characteristics and locations) of the properties and the circumstances of the sale (time and terms) are the important considerations.

MARKETABILITY

The probability of selling property at a specific time, price, and terms.

MARKETABLE TITLE

Title which can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

MARKET DATA APPROACH

(See: Market Value Approach).

MARKET PRICE

The price a property brings in a given market. Commonly used interchangeably with market value, although not truly the same. (See also: Market Value).

MARKET RENT

(See: Economic Rent).

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

The highest price a willing buyer would pay and a willing seller accept, both being fully informed, and the property exposed for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time.

MARKET VALUE APPROACH

(See: Market Data Approach).

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.

MARQUEE

A canopy-like projection over the entrance to a building, but not supported by posts or columns. Most commonly found on theaters and hotels.

MARSH

A grassy area of ground which is always soft and wet. Usually distinguished from a swamp by the absence of trees in the marsh.

MASONRY

Anything constructed of the materials used by a mason, such as brick, stone, cement, adobe, etc; anything constructed by a mason of these materials.

MASONRY WALL

A wall, constructed by a mason, of stone, brick, cement, or similar materials.

MASSACHUSETTS TRUST

An unincorporated association, not a partnership, doing business through a trustee. The name comes from authorization of such a trust under the laws of the state of Massachusetts.

MASS APPRAISING

Appraising a whole district or area at the same time, in order to adjust property taxes.

MASTER ASSOCIATION

An organization of homeowners in a large condominium or planned unit development (PUD) which includes representatives from other, smaller homeowner organizations.

MASTER FORM INSTRUMENT

(See: Fictitious Instrument).

MASTER LEASE

A lease controlling subsequent leases. May cover more property than subsequent leases. For example: "A" leases an office building, containing ten offices, to "B". "B" subsequently leases the ten offices individually. The ten leases from "B" as lessor are controlled by the lease from "A" to "B" (master lease).

MASTER PLAN

A zoning plan for an entire governmental subdivision, such as a city. A comprehensive plan to allow a city to grow in an orderly and sound manner, both economically and ecologically.

MASTER POLICY

An insurance policy to a lender covering property in more than one location. If more than one state is involved, underlying policies may be issued to meet state requirements.

MATCHED BOARDS

(See: Tongue and Groove).

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 upon which an agreement is based, and without which, said agreement would not be made.

MATERIALMAN

One who supplies construction materials. (See also: Mechanic's Lien).

MATURITY

(1) Termination period of a note. For example: A 30 year mortgage has a maturity of 30 years. (2) In sales law, the date a note becomes due.

MEAN

A middle point between two extremes; or an average, having an intermediate value between two extremes or between several successive values of variable quantity, such as mean low tide and mean high tide.

MEANDER

To follow a winding or flexuous course, usually referring to a river or stream.

MEANDER LINES

Lines run in surveying lands which border navigable rivers to determine the sinuosities of the river.

MEAN HIGH WATER MARK (MEAN HIGH TIDE)

The point on the shore which the average high tide will reach.

MEAN LOW WATER MARK

The point on the shore which the average low tide will reach.

MECHANIC'S LIEN

Alien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

MECHANIC'S LIEN SURETY BOND

A bond, from a bonding company, indemnifying a title insurer against loss from writing a policy before expiration of the mechanic's lien period.

MECHANIC'S & MATERIALMAN'S LIEN

(See: Mechanic's Lien).

MEDIAN STRIP

A divider, being a strip of land rather than a fence or barrier, between oncoming lanes of a roadway.

MEETING OF THE MINDS

A legal term meaning the mutual agreement necessary to form a contract. It is not based on what may actually be in the minds of the parties, but rather based on whether the acts of the parties and circumstances of the contract indicate that the parties agree.

MEGALOPOLIS

Modern word describing a heavily populated continuous urban area including many cities.

MENACE

Coercion, pressure. A threatening act which is aimed at forcing a person to act against their wishes.

MERGE

To combine two or more entities, so that one survives, the other or others becoming part of the surviving entity, and losing their individual identity.

MERGE LINE

An appraisal term. The line which arbitrarily splits a lot which fronts on two parallel streets, so that each portion will have the highest value.

MERGER

The combining of two or more entities (businesses) into one surviving entity.

MERGER OF TITLE

A lesser interest in real property being merged (absorbed) into a greater interest. For example: A lessee purchases the property being leased. The interest as a lessee is merged into the interest as an owner, thus ending the leasehold interest.

MERIDIAN

A circle or semicircle around the Earth in a North and South direction, always touching or passing through the poles. Used as a guide in surveying, being placed twenty-four miles apart and running from a base line.

MESNE

Intermediate, intervening.

MESNE ASSIGNMENT

Assignment from A to B to C to D would be described as passing from A by "mesne assignments" to D.

METAL LATH

A heavy coarse screen or slit sheet of metal which is used as a base upon which plaster is spread.

METAL VALLEY

(See: Flashing).

METAMORPHIC ROCK

One of the three major types of rock. A rock formed by metamorphosis (change) caused by heat and/or pressure.

METER

(1) A metric unit of measurement, equal to 39.37 inches. (2) A device for measuring the use of public utilities, such as electricity, gas, etc.

METES AND BOUNDS

Description of land by boundary lines, with their terminal points and angles. Originally metes referred to distance, bounds to direction; modernly, the words have no individual meaning of practical significance.

METROPOLITAN AREA

A major city and surrounding area. The extent of the surrounding area is usually determined by the extent of the influence of the city (commuters for work, shopping, etc.), on the surrounding area.

METROPOLITAN SHOPPING CENTER

(See: Regional Shopping Center).

MEZZANINE

(1) A partial floor between two floors (usually between the first and second). (2) The partial balcony of a theater between the orchestra floor and first balcony.

MICRORELIEF

Minor surface changes, such as channels, dunes, or low hummocks, rather than hills or mountains. The term is used by farm appraisers.

MIDDLEMAN

An informal description for a person who acts to bring together the parties to a transaction.

MILE

A linear measurement equal to 5280 feet on land and 6076 feet across water (nautical mile). (See also: Knot (2).

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

Equal to one tenth of a cent. Used in expressing a tax rate. Ten mills would be the same as ten dollars per thousand.

MILL CONSTRUCTION

A type of construction specifically to retard fire. Relies on heavy timbers instead of normal size lumber, extensive use of brick, masonry, and other fire resistant materials.

MILLWORK

Parts of a building produced in a mill, such as doors, window sashes, etc. Differs from cabinet work, which is the work of a finish carpenter, done at the construction site, or precision work done by a cabinet maker, on or away from the construction site.

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 ownership of the minerals (coal, gold, iron, etc.) under the ground, with or without ownership of the surface of the land. (See also: Subsurface Rights).

MINERALS

In real estate terms, those minerals of value which may be taken by mining, such as coal, iron, copper, gold, silver, etc. Mineral rights, as well as oil rights, may be sold or leased separately from the land itself.

MINERAL WOOL

A fibrous material produced by the action of steam on molten rock, under pressure, and used as an insulating material. (Also called rock wool).

MINER'S INCH

An indefinite measure of a flow of liquid. Generally agreed to be 1 /40th or 1 /50th of a cubic foot per second, but which fraction is used depends on area of the country.

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 RENTAL

A fixed rental in a lease which contains some formula for a possibly higher rental, such as a percentage lease, overrides, etc.

MINING LEASE

A right to extract (mine) minerals (coal, silver, etc.). (See also: Oil and Gas Lease; Profit a Prendre).

MINOR

Any person under the age of 18. In some states, under age 21 with regard to alcoholic beverages.

MINUTE

[See: Degree (1)].

MISNOMER

A wrong name or mistake in name.

MISPLACED IMPROVEMENTS

An appraisal term indicating an improvement on land which is not the highest and best use.

MISREPRESENTATION

A statement or conduct by a person which represents to another a fact which is not true. A seller, broker, or builder may have a duty to disclose certain defects in property to a buyer or tenant. Failure to disclose is also misrepresentation. The misrepresentation may be deliberate (known to be wrong), negligent (should have known), or innocent (reasonably believed to be true). Depending on the facts and extent of misrepresentation, there may be a suit for damages, recision of a contract, punitive action against the broker (loss of license), etc.

MISSION ARCHITECTURE

A Spanish style of architecture resembling those features of California missions.

MISTAKE

An unintentional, non-negligent error or misunderstanding. A mistake may be of the facts (mistake of fact) or their legal effect (mistake of law).

MITER

To cut two pieces (usually wood) at an angle, to form a joint.

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.)

M & M LIEN

(See: Mechanic's Lien).

MOBIL HOME

Originally, a trailer pulled behind a car or truck cab. Now includes large homes which are not truly mobil but are constructed in the same manner as trailers, as opposed to conventional on-site construction.

MOBIL HOME PARK

Originally, a trailer park, having electrical hookups, and water. Modernly, a park-like area having facilities such as complete plumbing and utilities, a recreation center, security guards at the entrance, and mobil homes which are usually attached to foundations and are permanent structures.

MODEL HOME

A home, often decorated, which is shown by a builder to prospective buyers of homes yet to be built. An identical home to the model is then constructed on a lot in the subdivision. The model home is generally sold last.

MODERNIZATION

To make changes to the interior or exterior of a structure for the purpose of reflecting developments of function or design which were not available at the time of the original construction.

MODIFICATION

A change to the terms of a contract.

MODULAR HOUSE

(See: Prefabricated House).

MOISTURE BARRIER

Insulating materials used to prevent the build up of moisture (condensation) in walls and other parts of a building.

MOLDING

Long, narrow strips of wood or synthetic material, used as a finish piece to cover the crack between the meeting of a wall with a floor or ceiling. Also used for decoration only.

MONEY MARKET

A general term referring to the availability of money for short or long term loans.

MONEY MARKET MUTUAL FUNDS

Funds which invest in the "Money Market" a variety of interest bearing securities such as treasury bills and bank certificates of deposit. None is invested directly into real property or real property securities.

MONOLITHIC SLAB

A concrete slab foundation where the slab and supporting beams are poured together. (See: Floating Slab).

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.

MONTH TO MONTH TENANCY

A tenancy where no written lease is involved, rent being paid monthly. Some obligations as to notice of moving or eviction may exist by statute.

MONUMENT

A visible, permanent object, marked by a surveyor, to indicate the boundaries of land. May be artificial, such as a post, or natural, such as a tree or large stone.

MORATORIUM

A period of suspension of legal rights or remedies. In real estate terms, most commonly used by governmental agenices (usually local) to suspend construction in certain areas until studies are completed to determine the best use for the land involved.

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.

MORTAR

A material used in masonry work as the "glue" holding stones or bricks together. It is composed of lime, cement, sand, and water, and hardens when it dries.

MORTGAGE

(1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.

MORTGAGE-BACKED CERTIFICATES

(See: Mortgage-backed Securities).

MORTGAGE-BACKED SECURITIES

Securities similar to bonds, but having their value based on a pool of mortgages or trust deeds (usually government insured). The rate of return is based on the interest rate of the mortgages, plus early payoffs, which increase the value of any discounts. The price of the securities will vary as comparative (current) interest rates rise and fall. (See: Collateralized Mortgage Obligation).

MORTGAGE BANKER

A company providing mortgage financing with its own funds rather than simply bringing together lender and borrower, as does a mortgage broker. Although the mortgage banker uses its own funds, these funds are generally borrowed and the financing is either short term or, if long term, the mortgages are sold to investors (many times insurance companies) within a short time.

MORTGAGE BONDS

Bonds issued by corporations, which offer first mortgages on real property of the corporation as security for the payment of the bonds.

MORTGAGE BROKER

One who, for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security. Also called a loan broker.

MORTGAGE CLAUSE

(See: Loss Payable Clause).

MORTGAGE COMMITMENT (COMMITMENT LETTER)

A promise, in writing, to provide a mortgage (or other loan, known). May also be used in insurance field. Sets out details of mortgage, insurance. Often referred to as Commitment Letter or Binder.

MORTGAGE COMPANY

A company authorized to service real estate loans, charging a fee for this service.

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.

MORTGAGEE

The party lending the money and receiving the mortgage. Some states treat the mortgagee as the "legal" owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.

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.

MORTGAGE INSURANCE

Insurance written by an independent mortgage insurance company (referred to as an 'MIC') protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price. The Federal Government writes this form of insurance through the FHA and the VA.

MORTGAGE LIFE INSURANCE

A term life insurance policy for the amount of the declining balance of a loan secured by a mortgage or deed of trust. The beneficiary under the policy is the mortgagee. In the event of death (some policies also cover disability) of the insured (mortgagor), the mortgage is paid in full.

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 POLICY (MORTGAGEE'S POLICY)

(See: Loan Policy)

MORTGAGE POOL

A group or "pool" of mortgages, an interest in which can be purchased through a securities dealer. Because of market changes in interest rates and points (discounts), early payoffs, and foreclosures, pools have different returns and, therefore, different investment values. The rate of payoffs and foreclosures is called the "speed" of the pool.

MORTGAGE REVENUE BONDS

Bonds sold on a state or local level (tax exempt) to finance real estate sales, construction, or refurbishing. Used in many instances to create affordale housing.

MORTGAGE SERVICING

Controlling the necessary duties of a mortgagee, such as collecting payments, releasing the lien upon payment in full, foreclosing if in default, and making sure the taxes are paid, insurance is in force, etc. Servicing may be done by the lender or a company acting for the lender, for a servicing fee.

MORTGAGE VALUE

The estimate worth of a particular asset which is established for the purposes of obtaining financing secured against that asset.

MORTGAGE WAREHOUSING

A system whereby a mortgage company will hold loans which would ordinarily be sold, in order to sell later at a lower discount. These mortgages are used as collateral security with a bank to borrow new money to loan.

MORTGAGOR

The mortgage broker.

MORTISE

A rectangular opening, cut in wood or other material, to receive a bar of wood or other material for the purpose of securing the two parts in a mortise joint.

MOST PROBABLE SELLING PRICE

An estimation of the price a property is most likely to realize in a given market.

MOTEL

Originally, a building near a major highway to accommodate travelers, offering a place to sleep and parking. Over the years motels have come to offer most of the features of hotels, such as restaurants, recreation, etc.

M ROOF

A roof constructed of two double pitched roofs, forming a shape similar to the letter M. Utilizes shorter rafters, making construction easier, and allows a lower overall height.

MULLION

A vertical bar separating panes of a window or panels of a door. Also an upright framing member of panels or wainscoating.

MULTIFAMILY DWELLING

(1) A building occupied by more than one family. (2) A building designed as a dwelling for more than four families at the same time.

MULTIPLE DWELLING

(See: Multifamily Dwelling).

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. Search the MLS for commercial and/or residential properties by clicking the underlined name above.

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 CORPORATION

A town, city, or village, incorporated as a political corporation under state statutes. Would not include a county, or such political divisions as a district.

MUNICIPALITY

A generic name for any organized local government (a city, town, etc.).

MUNICIPAL ORDINANCE

(See: Ordinance).

MUNIMENTS OF TITLE

Written evidence (documents) which an owner possesses to prove his title to property.

MUNTIN

A horizontal bar, dividing window panes in a window.

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.

MUTUAL SAVINGS BANK

An institution owned by its depositors, as evidenced by certificates of deposit rather than stock. These institutions are active in long term real estate financing, as opposed to commercial banks, which concentrate more on short term loans.

MUTUAL WATER COMPANY

A company in which the owners are the customers. Stock is issued to the users, who are the organizers of the company.

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