Real Estate Glossary - M

Majority, Age of - The age at which a person becomes legally competent; in Washington , 18 years old.

Maker - The person who signs a promissory note, promising to repay a debt.

Maps and Plats - Lot and Block Description.

Margin - In an adjustable-rate mortgage, the difference between the index rate and the interest rate charged to the borrower.

Marginal Land - Land that is of little economic value and barely repays the cost of working it.

Market Price - 1.The current price generally being charged for something in the marketplace. 2.The price actually paid for a property. Compare: Value, Market.

Master/Servant Relationship - A legal term for a standard employer/employee relationship.

Material Fact - Information that has a substantial negative impact on the value of the property, on a party's ability to perform, or on the purpose of the transaction.

Maturity Date - The date by which a loan is supposed to be paid off in full.

Merger - 1.Uniting two or more separate properties by transferring ownership of all of them to one person. 2. When the owner of one parcel acquires title to one or more adjacent parcels.

Meridian - An imaginary line running north and south, passing through the earth's poles. Also called a longitude line.

Meridian , Principal - In the rectangular survey system, the main north-south, passing through the earth's poles. Also called a longitude line.

Meridians, Guide - In the rectangular survey system, lines running north-south (parallel to the principal meridian) at 24-mile intervals.

Metes and Bounds Description - A legal description that starts at an identifiable pint of beginning, then describes the property's boundaries in terms of courses (compass directions) and distances, ultimately returning to the point of beginning.

Mill - One-tenth of one cent; a measure used to state property tax rates in some cases. For example, a tax rate of one mill on the dollar is the same as a rate of one-tenth of one percent of the assessed value of the property.

Mineral Rights - Rights to the minerals located beneath the surface of a piece of property.

Minimum Property Requirements (MPRs) - A lender's requirements concerning the physical condition of a building, which must be met before a loan can be approved.

Minor - A person who has not yet reached the age of majority; in Washington , a person under 18.

MIP - Mortgage insurance premium; especially a premium charged in connection with an FHA-insured loan.

Misrepresentation - A false or misleading statement. See: Fraud

MLS - Multiple Listing Service

Monopoly - When a single entity or group has exclusive control over the production or sale of a product or service.

Monetary Policy - The Federal Reserve Board's effort to control the supply and cost of money in the United States .

Monument - A visible marker (natural or artificial) used in a survey or a metes and bounds description to establish the boundaries of a piece of property.

Mortgage - 1.An instrument that creates a voluntary lien on real property to secure repayment of a debt, and which (unlike a deed of trust) does not include a power of sale, so it can only be foreclosed judicially; the parties are the mortgagor (borrower) and mortgagee (lender). 2. The term is often used more generally, to refer to either a mortgage or a deed of trust. Note: If you do not find the specific term you are looking for here under "Mortgage," check the entries under "Loan."

Mortgage, Adjustable-Rate (ARM) - A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money. Compare: Loan, Fixed-Rate.

Mortgage, Balloon - A partially amortized mortgage loan that requires a large balloon payment at the end of the loan term.

Mortgage, Blanket - A mortgage that covers more than on e parcel of property.

Mortgage, Budget - A loan in which the monthly payments include a share of the property taxes and insurance, in addition to principal and interest; the lender places the money for taxes and insurance in an impound account.

Mortgage, Chattel - An instrument that makes personal property (chattels) security for a loan. In states that have adopted the Uniform Commercial Code (including Washington ), the chattel mortgage has been replaced by the security agreement.

Mortgage, Closed - A loan that cannot be paid off early.

Mortgage, Closed End - A loan that does not allow the borrower to increase the balance owed: the opposite of an open-end mortgage.

Mortgage, Direct Reduction - A loan that requires a fixed amount of principal to be paid in each payment; the total payment becomes steadily smaller, because the interest portion becomes smaller with each payment as the principal balance decreases.

Mortgage, First - The mortgage on a property that has first lien position; the one with higher lien priority than any other mortgage against the property.

Mortgage, Graduated Payment - A loan in which the payments are increased periodically during the first years of the loan term, usually according to a fixed schedule.

Mortgage, Hard Money - A mortgage given to a lender in exchange for cash, as opposed to one given in exchange for credit.

Mortgage, Junior - A mortgage that has lower lien priority than another mortgage against the same property. Sometimes called a secondary mortgage.

Mortgage, Level Payment - An amortized loan with payments that are the same amount each month, although the portion of the payment that is applied to principal steadily increases and the portion of the payment applied to interest steadily decreases.

Mortgage, Open - A mortgage without a prepayment penalty.

Mortgage, Open-End - A loan that permits the borrower to reborrow the money he or she has repaid on the principal, usually up to the original loan amount, without executing a new loan agreement.

Mortgage, Package - A mortgage that is secured by certain items of personal property (such as appliances or carpeting) in addition to the real property.

Mortgage, Participation - A loan made in exchange for a share of the borrower's equity in the property, and/or a share in the earnings of the property.

Mortgage, Purchase Money - 1.When a seller extends credit to a buyer to finance the purchase of the property, accepting a deed of trust or mortgage instead of cash. Sometimes called a carryback loan. 2. In a more general sense, any loan the borrower uses to buy the security property (as opposed to a loan secured by property the borrower already owns).

Mortgage, Reverse Equity - An arrangement in which a homeowner mortgages the home to a lender in exchange for a monthly check from the lender.

Mortgage, Satisfaction of - The document a mortgagee gives the mortgagor when the mortgage debt has been paid in full, acknowledging that the debt has been paid and the mortgage is no longer a lien against the property.

Mortgage, Senior - A mortgage that has higher lien priority than another mortgage against the same property; the opposite of a junior mortgage.

Mortgage, Shared Appreciation - A mortgage in which a lender is entitled to a share of the increase in the value of the property.

Mortgage, Wraparound - A purchase money loan arrangement in which the seller uses part of the buyer's payments to make the payments on an existing loan (called the underlying loan); the buyer takes title subject to the underlying loan, but does not assume it. When the security instrument used for wraparound financing is a deed of trust instead of a mortgage, it may be referred to as an all-inclusive trust deed.

Mortgage Banker - An intermediary who originates and services real estate loans on behalf of investors.

Mortgage Broker - An intermediary who brings real estate lenders and borrowers together and negotiates loan agreements between them.

Mortgage Company - A type of real estate lender that originates and services loans on behalf of large investors (acting as a mortgage banker) or for resale on the secondary mortgage market.

Mortgagee - A lender who accepts a mortgage as security for repayment of the loan.

Mortgage Loan - Any loan secured by real property, whether the actual security instrument used is a mortgage or a deed of trust.

Mortgaging Clause - A clause in a mortgage that describes the security interest given to the mortgagee.

Mortgagor - A property owner (usually a borrower) who gives a mortgage to another (usually a lender) as security for payment of an obligation.

Multiple Listing Service (MLS) - An organization of brokers who share their exclusive listings.

Mutual Consent - When all parties freely agree to the terms of a contract, without fraud, under influence, duress, menace, or mistake. Mutual consent is achieved through offer and acceptance; it is sometimes referred to as a "meeting of the minds."

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