Home Buyers Glossary M

management agreement

 A contract between the owner of income property and a management firm or individual property manager outlining the scope of the manager’s authority to manage the property.

marketable title

Good or clear title, reasonably free from the risk of litigation over possible defects. market-data approach The process of estimating the value of a property by examining and comparing actual sales of comparable properties.

market price

The actual selling price of a property.

Marshal’s  or Sheriff’s Deed

A sheriff’s or marshal’s deed is a document used by courts in foreclosure or in carrying out a judgment. This deed transfers a debtor’s title to a buyer.

market value

The highest price which a ready, willing, and able buyer would pay, and the lowest price a seller will accept.

master plan

A comprehensive plan to guide the long-term physical development of a particular area.

mechanic’s lien

 A statutory lien created in favor of contractors, laborers, and material suppliers who have performed work or furnished materials in the erection or repair of a building.

megalopolis

 A heavily populated, large, urbanized area, sometimes extending over hundreds of miles and even across state lines.

metes and bounds description

 A legal description of a parcel of land which begins at a well-marked point and follows the boundaries, using direction and distances around the tract back to the place of beginning.

mill

 One-tenth of one cent. Some states use a mill rate to compute real estate taxes; for example, a rate of 52 mills would be $O.052 tax for each dollar of assessed valuation of a property.

monetary policy

 Governmental regulation of the amount of money in circulation through such institutions as the Federal Reserve Board.

money judgment

 A court judgment ordering payment of money rather than specific performance of a certain action. (See also JUDGMENT.)

month-to-month tenancy

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

monument

A fixed natural or artificial object used to establish real estate boundaries for a metes and bounds description.

Mortgage

A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.

Mortgage banker

 one who originates, sells, and ser­vices mortgage loans. Most loans are insured or guaran­teed by a government agency or private mortgage insurer

mortgagee

 A lender in a mortgage loan transaction.

Mortgage insurance (see also Private mortgage insurance or PMI)

 Insurance  offered by a private insurance company to protect the lender from liability or loss on a defaulted mortgage loan. Usually, PMI is required only for loans where the borrower places less than 20% down payment on the assessed value of the home . The borrower pays the PMI premiums to protect the lender. PMI is typically charged to the borrower when the loan-to-value (LTV) ratio is greater than 80 percent. The Homeowners Protection Act of 1998 requires that lenders notify a borrower when the LTV falls below 80 percent, at which time the borrower is allowed to cancel the PMI coverage. See also PMI
 

mortgage lien

 A lien or charge on the property of a mortgagor which secures the underlying debt

obligations.

mortgagor

 The borrower who conveys his or her property as security for a loan.

multiple listing

 An 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 nuclei theory

 A theory of urban development which holds that there is more than one central business district in any urban area. All land-use patterns thus will evolve from these various centers of activity.

negative cash flow

When income is exceeded by outgoing cash payments.  See CASH FLOW.