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").
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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.
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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.
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.
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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.
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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".
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sale
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".
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sale
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.
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sale
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.
