A GLOSSARY OF REAL ESTATE TERMS

M


MAI
A term that designates a person who is a memeber of the American Institute of Appraisers of the National Association of Realtors.
Maintenance
An expense line item that represents all expenses for the general repairs and maintenance of the building including common areas and general upkeep. Includes both in-house payroll and contracted services. Repairs and maintenance expense includes payroll, elevator, HVAC, electrical and plumbing, structural/roof, trash removal, and other repairs and maintenance expense items.
Management
Identifies the method by which the tenant is responsible for payment or reimbursement of Property Management Fees.
Management Fees
A line item expense that represents the sum paid for management services; a variable operating expense. Management services may be contracted for or provided by the property owner. Management expenses may include supervision, on-site offices or apartments for resident managers, telephone service, clerical help, legal or accounting services, printing and postage, and advertising. Management fees may occasionally be included among recoverable operating expenses.
Manufacturing
An Industrial property subtype in which the property is occupied by one or more tenants and the property is utilized for manufacturing purposes.
Margin
The number of percentage points the lender adds to the index rate to calculate the adjustable rate mortgage (ARM) interest rate at each adjustment.
The price paid for a property; the amount of money that must be given or which can be obtained at the market in exchange under the immediate conditions existing at a certain date. To be distinguished from market value.
Market Rent
The amount for which the competitive rental market indicates property should rent. Also referred to as "economic rent." Generally, contract lease rates are "marked to market" if contract rent is greater than or less than market rent.
Market Vacancy
Marketable Title
A title that is free and clear of objectionable liens, clouds or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.
Marketing
The management process through which efforts to conceive, develop and deliver goods and services are integrated to satisfy the needs and wants of selected customers as a means of achieving company objectives.
Masonry General Building Exterior
Identifies the general property exterior to be constructed of stone, brick, tile, cement, concrete or similar materials.
Max Loan Size
Identifies the maximum requested loan amount a member lender is willing to accept from the lender.
Max Amortization
The maximum number of periodic installments (expressed in years) over which repayment of a mortgage debt is calculated; a portion of each payment consists of a blend of interest and amortization of principal. For example, if a loan has a 25 year amortization schedule and a 10 year term, a balloon payment of the outstanding principal will be due at the end of the tenth year.
Max Loan to Cost
The ratio between the principal amount of the mortgage balance, at origination or thereafter, to the current value (or cost of construction if a construction loan) of the underlying real estate collateral. The ratio is commonly expressed to a potential borrower as the percentage of value a lending institution is willing to finance. The ratio is dynamic and varies by lending institution, property type, geographic location, property size, among other things.
Maximum Loan
Displays the maximum calculated loan based on the net cash flow subject to the underwriting parameters indicated in the loan file.
Mechanics Lien
A 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.
Medical Office
An Office property subtype in which the property is occupied by one or more tenants and the property is utilized for medical office purposes (e.g. physician/dentist offices, medical laboratory, outpatient clinic, etc.).
Merger Of Title
The combination of two estates. Also refers to the joining of one estate burdened by an encumbrance and another estate benefited by the encumbrance. Whenever a benefit and a burden are merged, the encumbrance is extinguished.
Metes and bounds
A system or method of describing land, ’real’ property (in contrast to personal property) or real estate. The system has been used in England for many centuries, and is still used there in the definition of general boundaries. By custom, it was applied in the original 13 colonies that became the United States, and in many other land jurisdictions based on English Common Law.
A Mezzanine Loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure.
Mid-Rise Apartments
A Multifamily subtype; a four- or more story apartment building or development; typically elevator-serviced.
Mixed Use
A general property type or building type classification characterized by its multiple uses; a real estate development that contains two or more different uses all intended to be harmonious and complementary (e.g. a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor). In kiscl, building types available for mixed-use analysis include office, retail, industrial, multifamily and healthcare. Hotel and self-storage properties are analyzed as single-purpose properties.
Misrepresentation
False statement made to or concealment of knowledge from another party with the intent to provoke action from that party.
Mobile Home Park
A general property type or building type classification characterized by its usage as a mobile home park.
Modified Gross
Lease structure under which the landlord and tenant pay different or allocated expenses; a lease in which the landlord receives stipulated rent and the payment of the property’s operating expenses are divided between the lessor and lessee via specified terms in the lease; also called Net-Net (Double Net), depending on the degree to which the tenant or landlord are responsible for operating costs.
Month-To-Month Tenancy
A lease of property for a month at a time, under a periodic tenancy that continues for successive months until terminated by proper notice, usually 30 days.
A lien or claim against real property given as security for a loan. It is a two party agreement as apposed to the three-party agreement of a deed of trust.
Financial intermediaries that originate mortgage loans through loan officers or independent mortgage brokers and sell the mortgages into the secondary mortgage market.
A professional that helps consumers through the loan selection, processing and closing of a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.
Mortgage Commitment
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
Mortgage Insurance
Insurance required for a loan-to-value ratio above 80.01%.
The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.
Mortgage Warehousing
A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.
The lender in a mortgage transaction.
The borrower in a mortgage transaction who pledges property as a security for a debt.
Multifamily
A general property type or building type classification characterized by its usage for multifamily residential purposes; Low-Rise Garden Apartments, Mid-Rise Apartments, High-Rise Apartments, Student Housing, Military Housing, Townhouse style, Co-op, etc.
Multiple Listing Service
A means of making possible the orderly dissemination and correlations of listing information to its members so that REALTORS may better serve the buying and selling public.