Southwest Florida Real Estate
Real Estate and Mortgage Terms Glossary
Real Estate and Mortgage transactions have languages all their own. Since most people don't use these terms on any type of a regular basis, we are providing this real estate and mortgage term glossary as a quick and easy reference for you to use. Rather than being unsure about a terms meaning, you can check here first. Of course, if you need a more in-depth understanding, please contact us directly and we'll be happy to assist you.
Terms - Letter M
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair. See Disclosures.
Once known as "mobile homes", manufactured housing is any building which has been constructed off site, then moved onto a piece of real property.
The difference between the interest rate and the index on an adjustable rate mortgage.
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.
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.
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.
An umbrella organization that is made up of multiple, smaller home owner's associations. Often found in very large developments or condominium projects. See Condominium and HOA Documents.
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.
The date on which the principal balance of a financial instrument becomes due and payable.
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.
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.
A tax rate, expressed as the number of mills to be applied. Amount varies by county.
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.
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.
The act of changing any of the terms of the mortgage.
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.
A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.
A financial institution that provides mortgages to home buyers.
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.
The entity that lends money in a real estate transaction.
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
Tax required on all mortgage notes. Currently $0.35 per $100 of face value of the mortgage in Florida. See Loan Closing Costs.
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.
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 Information for Sellers and Marketing Focus.