Real Estate Glossary

Letter M

Made-LandArtificially formed land, either by filling or dredging.

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

Magistrate's CourtCourt having jurisdiction over minor matters (small claims), and usually not a court of record.

Magnesite FlooringA synthetic floor, floated approximately 1 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.

Magnet StoreA major department or chain storestrategically located within a shopping centerto give maximum exposure to smaller satellitestores.

MAHSee: Multifamily Affordable Housing

MAIA designation conferred by the Appraisal Institute upon member appraisers who are qualified to appraise all types of property as well as give real estate investment advice. See also: RM; SRA; SREA; SRPA.

Mailbox RuleAcceptance of a contract offer iseffective the moment it is mailed, even thoughone party has not yet received it.

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

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

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

Maintenance FeeAs 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 ReserveMoney reserved to cover anticipated maintenance costs.

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

MakerOne 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.

ManagementSee: Property Management.

Management AgreementA contract between the owner of income property and a management firm or individual property manager outlining the scope of the manager's authority.

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

Management ProposalA plan created by theproperty manager for overseeing the property,including market analysis, and developinga variety of financial reports including theoperating budget.

MandamusLatin 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 RoofA 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 load- bearing.

Manufactured HomeA structure built in a factory and assembled at the site. The term is also used to describe a mobile home. See also: Stick Built Home. A manufactured home is built using more metal and less wood and brick than a stick built home. Manufactured homes are less expensive than comparable stick built structures.

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

Maps And PlatsSee: Plat.

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

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

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

Marginal LeaseA lease agreement that barely covers the costs of operation for the property.

Marginal Real EstateLand that barely covers the costs of operation.

Margin Of SecuritySee: Equity (2).

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

MarkAn "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.

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

Marketable TitleA good or clear salable title reasonably free from risk of litigation over possible defects.

Market Data ApproachAppraising 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.

Market/Data ApproachA method of appraising or evaluating real property based on the proposition that an informed purchaser would pay no more for a property than the cost to him or her of acquiring an existing property with the same utility. This approach is applicable when an active market provides sufficient quantities of reliable data that can be verified from authoritative sources. The approach is relatively unreliable in an inactive market or in estimating the value of properties for which no real comparable sales data are available. It also is questionable when sales data cannot be verified with principals to the transaction. Also referred to as the market comparison or direct sales comparison approach.

Market PositionThe position an agent's listingis in compared to similar homes in the sameneighborhood at a similar price.

Market PriceThe actual selling price of a property.

Market RentSee: Economic Rent.

Market ValueThe most profitable price a property will bring in a competitive and open market under all conditions requisite to a fair sale. The price at which a buyer would buy and a seller would sell, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

Market Value ApproachSee: Market Data Approach.

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

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

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

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

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

Master AssociationIn a multi phase condominium or planned unit development project there may be homeowners' associations that are concerned with specific areas of the project. The Master Association oversees these associations and handles matters affecting the entire project.

Master Form InstrumentSee: Fictitious Instrument.

Master LeaseA 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 PlanA 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 PolicyAn 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 BoardsSee: Tongue and Grove.

Material BreachA breach of contract important enough to excuse the non-breaching party from performing his contractual obligations.

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

MaterialmanOne who supplies construction materials. See also: Mechanic's Lien.

Materialman’s LienSimilar to a mechanic’s lien, butbased on a debt owed to someone who suppliedmaterials, equipment, or fuel for a project (asopposed to labor).

MeanA 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.

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

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

Mean High Water MarkThe point on the shore where the average high tide will reach.

Mean Low Water MarkThe point on the shore which the average low tide will reach.

Measuring LifeA person whose life determines the length of a life estate. See: Life Estate.

MechanicA person who performs work(construction, remodeling, repairs, or demolition)on real property. See: Mechanic's Lien. Compare:Materialman.

Mechanic's LienA lien 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 LienA statutory lien created in favor of contractors, laborers, and materialmen or material suppliers who have performed work or furnished materials in improving real property.

Mechanic's Lien Surety BondA 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 LienSee: Mechanic's Lien.

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

Meeting Of The MindsA 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.

MegalopolisModern work describing a heavily populated continuous urban area including many cities.

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

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

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

Merger Of TitleA 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.

MeridianA 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.

MesneIntermediate, intervening.

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

MesotheliomaA form of lung cancer caused by extended exposure to asbestos.

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

Metal ValleySee: Flashing.

Metamorphic RockOne 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 BoundsDescription 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.

Metes-And-Bounds DescriptionA legal description of a parcel of land that begins at a well-marked point and follows the boundaries, using direction and distances around the tract, back to the point of beginning.

MethamphetamineAn illegal, man-made drug that is extremely addictive. Residues left in a residence from the manufacturing process can be toxic.

Metropolitan AreaA 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 CenterSee: 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.

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

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

MilkingSee: Equity Skimming.

MillA tax rate used by municipalities to compute property tax.

Millage RateA property tax rate obtained by dividing the total assessed value of all the property in the tax district into the total amount of revenue needed by the taxing district. This millage rate then is applied to the taxable value of each property in the district to determine individual taxes.

Mill ConstructionA 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.

MillworkParts 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 a construction site, or precision work done by a cabinet maker, on or away from the construction site.

Mineral RightsThe 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.

MineralsIn 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 WoolA 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 InchAn indefinite measure of the 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 the area of the country.

Minimum LotThe smallest allowable lot size for development, as stipulated by local zoning laws.

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

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

MinorAny person under the age of 18, or under age 21 with regard to alcoholic beverages.

MinuteSee: Degree (1).

Mirror Image RuleA term used to describe acceptance of certain types of contracts, such as contracts involving real estate. The term means that the offer must be unequivocally accepted to create the contract. If you looked at the offer and the acceptance, they would be the "mirror image" of each other.

MisdemeanorA misdeed triable in a court of special sessions.

MisnomerA wrong name or mistake in name.

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

MisrepresentationTo represent falsely; to give an untrue idea of a property. May be accomplished by omission or concealment of a material fact.

Mission ArchitectureA Spanish style of architecture resembling those features of California missions.

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

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

MitigationWhen the non-breaching party takes action to minimize losses resulting from a breach of contract.

M & M LienSee: Mechanic's Lien.

Mobile Home ParkOriginally, 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.

Mobil HomeOriginally, 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.

Model HomeA 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.

ModernizationTo 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.

Modular HouseSee: Prefabricated House.

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

MoldA fungus that can release toxins into theenvironment causing allergic reactions in somepeople.

MoldingLong, 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.

Monetary PolicyThe government regulation of the amount of money in circulation through such institutions as the Federal Reserve Board.

Money JudgmentA court judgment ordering payment of money rather than specific performance of a certain action.

Money MarketThose institutions, such as banks, savings-and-loan associations, and life insurance companies, who supply money and credit to borrowers.

Money Market Mutual FundsFunds 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.

Monoline PolicyInsurance coverage designed to cover one specific area—property

Monolithic SlabA concrete slab foundation where the slab and supporting beams are poured together. See: Floating Slab.

Monthly Advance Reverse MortgageA mortgage under which the borrower receives monthly payments which are repaid in a lump sum, either at a specified time, when the borrower sells the property, or when the borrower dies. See also: Reverse Mortgage.

Monthly Fixed InstallmentA monthly payment of principal and interest not subject to change.

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

Month-To-Month TenancyA periodic tenancy – the tenant rents for one period at a time. In the absence of a rental agreement (oral or written), a tenancy generally is considered to be from month to month.

MonumentFixed natural or artificial objects, used in metes-and-bounds description, to establish the boundaries; located at the corners.

MonumentsFixed physical objects stated as points of reference in a metes and bounds description.

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

MortarA 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-Backed CertificatesSee: Mortgage-backed Securities.

Mortgage-Backed SecuritiesSecurities 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 increases 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 BondsBonds issued by corporations, which offer first mortgages on real property of the corporation as security for the payment of the bonds.

Mortgage ClauseSee: Loss Payable Clause.

Mortgage CompaniesInstitutions that function as originators and servicers of loans on behalf of large investors, such as insurance companies, pension plans, or Fannie Mae.

Mortgage CompanyA company authorized to arrange real estate loans, charging a fee for this service.

Mortgage Credit Certificate Program (MCC)A federal program authorized by the Tax Reform Act of 1984. The program allows a tax credit to a home buyer of a portion of the amount that would be paid in income tax. This enables a lender to raise the borrower's income when attempting to qualify the buyer for a home purchase.

Mortgage DiscountSee: Discount Points.

Mortgage InsuranceInsurance 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 sales price. The Federal Government writes this form of insurance through the FHA and the VA.

Mortgage LienA lien or charge on a mortgagor's property that secures the underlying debt obligations.

Mortgage Life InsuranceA 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 ModificationA refinancing plan to help a mortgagor in default. The payment may be reduced if the amount refinanced is lower than the original mortgage amount or the term is extended. A mortgagor may qualify if he/she has recovered from a financial problem and can afford the new payment amount.

Mortgage OutTo finance the total cost of a property or project.

Mortgage Payment Adjustment PeriodThe interval at which a borrower's actual mortgage payments change with an ARM (adjustable rate mortgage).

Mortgage Payment CapA limit on the amount ofmortgage payment increases that can occur withan adjustable rate mortgage.

Mortgage Policy (Mortgagee's Policy)See: Loan Policy.

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

Mortgage Saving (or Savings) ClauseA clause in the CC&R's (covenants, conditions, and restrictions) which states that a violation of the CC&R's shall not defeat a subsequent mortgage made in good faith and for value.

Mortgage ServicingControlling 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 ValueThe value of an asset for purposes of securing a mortgage loan.

Mortgage WarehousingA 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.

MortiseA 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.

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

M RoofA 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.

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

Multifamily Affordable Housing (Targeted Affordable Housing)Multifamily property with a certain percentage of the units set aside for low income families. The rental amount is based on a percentage of the median income of the area, adjusted for family size. Appropriate units meet FNMA's Multifamily Affordable Housing lending requirements.

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.

Multifamily MortgageA loan secured by a mortgage on a residence consisting of more than four units.

Multifamily PropertyTo meet the FNMA definition it is a residential property of not less than five dwelling units with not more than 20 percent of the net rentable area rented or set aside for rent to non-residential tenants.

Multiple DwellingSee: Multifamily Dwelling.

Multiple ListingAn exclusive listing (generally an exclusive right to sell) with the additional 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 service wherebylocal member brokers agree to share listings,and further agree to share commissions onproperties sold jointly. The MLS generallyconsists of online computer services and aregularly published book.

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

Municipal Engineer’s OfficeThe municipal agencyresponsible for the planning, design, andconstruction of New York’s public works facilitiesand projects.

Municipal OrdinanceSee: Ordinance.

Municipal OrdinancesThe laws, regulations, and codes enacted by the governing body of a municipality.

Muniments Of TitleWritten evidence (documents) which an owner possesses to prove his title to property.

MuntinA horizontal bar, dividing window panes in a window.

Mutual ConsentWhen all parties freely agree to the terms of a contract, without fraud, undue influence, duress, or mistake, and achieved through offer and acceptance. Also called:Meeting of the Minds.

Mutual MistakeWhen both parties to a contract were mistaken about a fact or a law.

Mutual Mortgage Insurance PlanThe name of the FHA's insurance program for residential mortgages.

Mutual RescissionThe act of putting an end to a contract by mutual agreement of the parties.

Mutual Savings BankAn 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 CompanyA company in which the owners are the customers. Stock is issued to the users, who are the organizers of the company.

MycotoxinA toxic substance produced by some molds.