Real Estate and Mortgage Terms Glossary

If you need a more in-depth understanding of a particular term, or have additional questions on any of these definitions, please contact us directly and we'll be happy to assist you.

Glossary Index

A | B | C | D | E | F | G-H | I-K | L | M | N | O | P-Q | R | S | T | U-Z

Terms starting with Letter M

MAJOR DEFICIENCY

A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair. See Disclosures.

MANUFACTURED HOUSING

Once known as "mobile homes,"  manufactured housing is any building which has been constructed off site, then moved onto a piece of real property.

MARGIN

The difference between the interest rate and the index on an adjustable rate mortgage.

MARGINAL LAND

Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.

MARKETABLE TITLE

Property is said to have marketable title when the title, or rights to a property, has no problems or only minor problems that any well-informed and prudent buyer would except. See Title Insurance.

MARKET VALUE

The highest price for which a property would sell, assuming a reasonable time for the sale and a knowledgeable buyer and seller acting without duress.

MASTER ASSOCIATION

An umbrella organization that is made up of multiple, smaller home owner's associations. Often found in very large developments or condominium projects. See our Condominium and HOA Documents page.

MATERIAL DEFECT

Defects, including any property damage, malfunctions of major systems/environmental hazards in a home, which should be readily disclosed to a buyer. See Home Inspections.

MATURITY

The date on which the principal balance of a financial instrument becomes due and payable.

MEDIATION

An alternative to arbitration and judicial proceedings, in which parties can resolve disputes between themselves using an impartial third party to moderate the proceedings and help them find a mutually acceptable resolution.

MERGED CREDIT REPORT

A credit report derived from data obtained from multiple credit agencies. See FICO Scores.

METES AND BOUNDS

A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.

METROPOLITAN AREA

The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.

MILLAGE

A tax rate, expressed as the number of mills to be applied. Amount varies by county.

MINERAL RIGHTS

The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.

MISREPRESENTATION

A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.

MODIFICATION
The act of changing any of the terms of the mortgage.

MOLD
Mold spores are naturally occurring and enter the home through doorways, windows, and heating and air conditioning systems. In large numbers they pose a health risk. See Mold Disclosure.

MORTGAGE

A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

MORTGAGE BANKER

A financial institution that provides mortgages to home buyers.

MORTGAGE BROKER

A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.

MORTGAGEE

The entity that lends money in a real estate transaction.

MORTGAGE INSURANCE

A policy that fulfills those obligations of a mortgage when the policy holder defaults or is no longer able to make payments.

MORTGAGE INSURANCE PREMIUM (MIP)

A fee that is often included in mortgage payments that pays for mortgage insurance coverage.

MORTGAGE LIFE INSURANCE

A policy that fulfills the obligations of a mortgage when the policy holder dies.

MORTGAGE DOCUMENTARY STAMP TAX ON NOTES, State

Tax required on all mortgage notes. Currently $0.35 per $100 of face value of the mortgage in Florida. See Loan Closing Costs.

MORTGAGOR

The entity that borrows money in a real estate transaction.

MORTGAGE TITLE POLICY

A title insurance policy issued to cover the lender. It protects the lender against title defects for the amount of the mortgage loan.

MULTI-FAMILY PROPERTIES

Any collection of buildings that are designed and built to support the habitation of more than four families.

MULTIPLE LISTING SERVICE (MLS)

Information systems that provide their members with a variety of information including competitive market analysis data, contracts, worksheets, investment analysis and online mapping and tax records, in addition to listing inventory. See our Information for Sellers and Marketing Focus pages.

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