Dictionary of Terms - M

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Macadam: Layers of compacted stone used as road pavement. Often mixed with tar or asphalt to hold the stone together
Maintenance Expenses: Costs incurred for day-to-day upkeep, such as management, wages and benefits of building employees, fuel, utility services, decorating and repairs.
Maintenance Fee: The monthly assessment paid by homeowners' association members for the repair and maintenance of common areas.
Management Agreement: A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager's authority.
Mantel: A decorative facing, usually with a shelf, around a fireplace.
Margin: A percentage added to the index and fixed for the life of the loan. When the initial interest rate on an adjustable-rate loan has expired, the interest rate moves toward the sum of its index plus a margin.
Marital Property: (See community property and tenancy by the entirety.)
Markers: (See monuments.)
Market Analysis: A study of market conditions for a specific type of property. (USPAP)
Market Comparison Approach: (See sales comparison approach.)
Market Comparison Method Of Depreciation: (See sales comparison method of depreciation.)
Market Data Approach: Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price-wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of comparability or extent of adjustment necessary for time differences, and (d) the absence of non-typical conditions affecting the sales price. Also see Sales Compaison Approach.
Market Extraction Method Of Depreciation: (See sales comparison method of depreciation.)
Market Price: The actual price paid for a property - either above or below market value.
Market Rent: The rental income that a property would most probably command on the open market as indicated by current rents being paid for comparable space (as of the effective date of the appraisal). This is preferred terminology to the term "Economic Rent" which has traditionally been used in appraisal analysis. Market Value
Market Value: The definition of market value issued by the institutional regulators and shown in the USPAP as an example is: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buye
Market: A place where goods can be bought and sold and a price established.
Marketable Title: Good or clear title reasonably free from the risk of litigation over possible defects.
Masonry: Construction of brick, stone, tile or concrete.
Mass Appraising: A method of appraising a large number of properties at one time by adopting standard techniques and giving due consideration to the appraisal process so that taxing uniformity may be achieved between all properties.
Master Plan: A comprehensive plan to guide the long-term physical development of a particular area.
Mean: The arithmetic mean is a simple average of the observations of a population or a sample. The mean value is affected by extreme values in the set of data and may not be representative of any actual observation in total population or sample.
Mechanic's Lien: A lien created by statute that exists in favor of contractors, laborers or materialmen who have performed work or furnished materials in the erection or repair of a building.
Mechanical Systems: Usually building components such as the plumbing and heating systems, electrical systems, air conditioning and other specialized systems.
Median: The median is the middle observation of the population or the sample of numbers arranged in order of magnitude and is unaffected by extreme values in the data set. In the case of even observations the median will not be an actual observation in the population or sample because it is the average of the middle values. In the case of an odd number of observations the median will be an observation from among those in the population or the sample
Megan's Law: Federal legislation that promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children commits sexual crimes against children or commits sexually violent crimes.
Merged Credit Report: A report that draws information from the three (3) main credit-reporting agencies incvluding: Equifax, Experian and Trans Union.
Meridian: One of a set of imaginary lines running north and south and crossing a base line at a definite point used in the rectangular (government) survey system of property description.
Metes And Bounds: A system of land description using distance (metes) and angles/compass directions (bounds), beginning and ending at the same point.
Metes-and-bounds Description: A legal description of a parcel of land that begins at a well-marked point and follows the boundaries using directions and distances around the tract back to the place of beginning.
Mile: A linear distance of 5,280 feet. The length of one side of a section of land in governmental survey.
Mill: One-tenth of one cent. For example, a tax rate of 52 mills would be $0.052 for each dollar of assessed valuation of a property.
Millage: A tax rate set by the county government. Millage is calculated by dividing a county's operating budget by total assessed value in the county. For example, a millage rate of 25 mills or $25 per thousand means that the assessed value of the property is multiplied by $25 for each thousand dollars of assessment.
Mineral Rights: The rights to minerals beneath the ground such as coal, iron and gold with or without ownership of the surface of the land.
Minor: Some one who has not reached the age of majority and therefore does not have legal capacity to transfer title to real property.
MLS: The MLS is the Multiple Listing Service. It is a cooperative of real estate brokers who pool their data and listings into one data bank.
Mobile Home: A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system; does not include a recreational vehicle. Also called a manufactured home.
Mode: The mode is the most commonly occurring observation in the population or the sample. It is the most frequent observation. It is also unaffected by extreme values of the population or the sample.
Model: A physical or mathematical scaled prototype of a building, economic theory, or phenomenon constructed for studying its properties. In architecture, a physical model might be used as a visual aid for designing a building. In appraisal, a procedure (mathematical or statistical) model might be built to obtain a capitalization rate or to extract market characteristics.
Modification: A change in the terms of a loan agreement.
Modified Annual Percentage Rate (APR): The modified APR is an index of loan cost based on the standard APR and adjusted for the time the borrower expects to hold the loan.
Monetary Policy: Governmental regulation of the amount of money in circulation through such institutions as the Federal Reserve Board.
Monthly Association Dues: A payment due monthly to a homeowners' association for maintenance and communal expenses.
Month-to-month Tenancy: A periodic tenancy under which the tenant rents for one month 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 Acceleration Clause: A clause that allows a mortgage lender to demand repayment of the entire loan balance in a lump sum under certain circumstances, such as when the home is sold, title is changed, the loan is refinanced or the borrower defaults on a scheduled payment.
Mortgage Banker: A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
Mortgage Broker Business: A company that matches lenders with prospective borrowers who meet the criteria of lenders the broker is approved to deal with. The mortgage broker business does not keep or make the loan, but receives payment from the lender for services.
Mortgage Broker: An agent of a lender who brings the lender and borrower together. The broker receives a fee for this service.
Mortgage Insurance: Required by lenders on some loans to protect lenders from a possible default. Most conventional loans with down payments or home equity percentages that are less than 20 percent of the home value require private mortgage insurance (PMI).
Mortgage Interest Deduction: The tax write-off for annual interest payments made on real estate loans.
Mortgage Lien: A lien or charge on the property of a mortgagor that secures the underlying debt obligations.
Mortgage Life Insurance: Insurance that will pay off a mortgage if the borrower dies before the debt is retired.
Mortgage: A sum of money borrowed to purchase a home using the property as collateral. A mortgage is the legal document that pledges the property as collateral for a loan.
Mortgagee: A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
Mortgagor: An owner of real estate who borrows money and conveys his or her property as security for the loan.
Multiperil Policies: Insurance policies that offer protection from a range of potential perils such as those of a fire, hazard, public liability and casualty.
Multiple-listing Clause: A provision in an exclusive listing for the 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 marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready willing and able buyers for their properties more quickly than they could on their own. Most multiple listing services accept exclusive, right-to-sell or exclusive agency listings from their member brokers.

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