Real Estate Insurance Terms - M

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MADE-LAND - Artificially formed land, either by filling or dredging.

MAGISTRATE - Any civil public officer. Most commonly used to designate an inferior judicial officer, such as a justice of the peace, police justice, etc.

MAGISTRATE'S COURT - Court having jurisdiction over minor matters (small claims) and usually not a court of record.

MAIN - A large conduit or pipe, carrying electricity, sewage, gas, etc., to or from branch lines.

MAINTENANCE - Keeping a property in condition to efficiently serve its intended purpose.

MAINTENANCE FEE - As applied to condominiums and planned developments, the amount charged each unit owner to maintain the common area. Usually a monthly fee paid as part of the budget.

MAJORITY - The age at which a person is no longer a minor and is legally entitled to contract and enjoy civic rights, such as voting.

MANDAMUS - Latin for "we command". A writ issued b a superior court ordering an inferior court, corporation, or individual, to do or refrain from doing specific acts. The main importance to real estate is that it is a writ commanding a governmental body to do something, such as issue a building permit.

MANSARD ROOF - A four-sided roof, each side having two separate slopes of different degree; the lower slope is at a much steeper angle than the upper slope.

MANTEL - (1) The lintel of a fireplace opening, constructed by a post and lintel method. May be of stone, a heavy beam or other material of strength. (2) A decorative shelf above a fireplace opening, not load-bearing.

MARBLE - A hard, single or multicolored limestone; in construction, used in place of tile in more expensive structures.

MARGINAL LAND - (1) Any income producing land which barely covers expenses. (2) Land which is clearly not the best for an intended purpose, but may be adequate.

MARINA - A small harbor or basin having docks, supplies and maintenance services for boats.

MARK - An "X" or other symbol used by one who cannot write his or her name. Modernly not used often and laws as to the validity of using a mark should be checked.

MARKETABILITY - Salability. The probability of selling property at a specific time, price and terms.

MARKETABLE TITLE - Title which can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

MARKET PRICE - The price a property brings in a given market. Commonly used interchangeably with market value, although not truly the same.

MARKET VALUE - The highest price a willing buyer would pay and a willing seller accept, both being fully informed, and the property exposed for a reasonable period of time. The market value may be different from the price a property can actually be sold for a given time (market price).

MARQUEE - A canopy-like projection over the entrance to a building, but not supported by posts or columns. Most commonly found on theaters and hotels.

MARSH - A grassy area of ground which is always soft and wet. Usually distinguished from a swamp by the absence of trees in the marsh.

MASONRY - Anything constructed of the materials used by a mason, such as brick, stone, cement, adobe, etc.; anything constructed by a mason of these materials.

MASONRY WALL - A wall constructed by a mason of stone, brick, cement, or similar materials.

MASTER LEASE - A lease controlling subsequent leases. May cover more property than subsequent leases. For example: "A" leases an office building, containing ten offices, to "B". "B" subsequently leases the ten offices individually. The ten leases from "B" as lessor are controlled by the lease from "A" to "B" (master lease).

MASTER PLAN - A zoning plan for an entire governmental subdivision, such as a city. A comprehensive plan to allow a city to grow in an orderly and sound manner, both economically and ecologically.

MASTER POLICY - An insurance policy to a lender covering property in more than one location. If more than one state is involved, underlying policies may be issued to meet state requirements.

MATERIAL FACT - A fact upon which an agreement is based, and without which, said agreement would not be made.

MATURITY - (1) Termination period of a note. For example: A 30-year mortgage has a maturity of 30 years. (2) In sales law, the date a note becomes due.

MEAN - A middle point between two extremes; or an average, having an intermediate value between two extremes or between several successive values of variable quantity, such as mean low tide and mean high tide.

MEANDER - To follow a winding or flexuous course, usually referring to a river or stream.

MEAN HIGH WATER MARK - The point on the shore which the average high tide will reach.

MEAN LOW WATER MARK - The point on the shore which the average low tide will reach.

MECHANIC'S 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, and which attaches to the land as well as the improvements.

MEGALOPOLIS - Modern word describing a heavily populated continuous urban area including many cities.

MERIDIAN - A circle or semicircle around the Earth in a North and South direction, always touching or passing through the poles. Used as a guide in surveying, being placed twenty-four miles apart and running from a base line.

METER - A metric unit of measurement, equal to 39.37 inches. (2) A device for measuring the use of public utilities, such as electricity, gas, etc.

METES AND BOUNDS -- Description of land by boundary lines, with their terminal points and angles. Originally metes referred to distance, bounds to direction; modernly, the words have no individual meaning of practical significance.

METROPOLITAN AREA - A major city and surrounding area. The extent of the surrounding area is usually determined by the extent of the influence of the city (commuters for work, shopping, etc.), on the surrounding area.

MEZZANINE - A partial floor between two floors (usually between the first and second). (2) The partial balcony of a theater between the orchestra floor and first balcony.

MILE - A linear measurement equal to 5,280 feet on land and 6,076 feet across water (nautical mile).

MINERAL RIGHTS - The ownership of the minerals (coal, gold, iron, etc.) under the ground, with or without ownership of the surface of the land

MINERALS - In real estate terms, those minerals of value which may be taken by mining, such as coal, iron, copper, gold, silver, etc. Mineral rights as well as oil rights, may be sold or leased separately from the land itself.

MINERAL WOOL - A fibrous material produced by the action of steam on molten rock, under pressure and used as an insulating material (Also called rock wool).

MINER'S INCH - An indefinite measure of a flow of liquid. Generally agreed to be 1/40th or 1/50th of a cubic foot per second, but which fraction is used depends on area of the country.

MINIMUM LOT - The smallest allowable lot size for development, as stipulated by local zoning laws.

MINIMUM RENTAL - A fixed rental in a lease which contains some formula for a possibly higher rental, such as a percentage lease, overrides etc.

MINING LEASE - A right to extract (mine) minerals (coal, silver, etc.).

MINOR - Any person under the age of 18. In some states, under 21 with regard to alcoholic beverages.

MISREPRESENTATION - A statement or conduct by a person which represents to another a fact which is not true. A seller, broker or builder may have a duty to disclose certain defects in property to a buyer or tenant. Failure to disclose is also misrepresentation. The misrepresentation may be deliberate (known to be wrong), negligent (should have known) or innocent (reasonably believed to be true). Depending on the facts and extent of misrepresentation, there may be a suit for damages, rescission of a contract, punitive action against the broker (loss of license), etc.

MISSION ARCHITECTURE - A Spanish style of architecture resembling those features of California missions.

MOBIL HOME - Originally, a trailer pulled behind a car or truck cab. Now includes large homes which are not truly mobile but are constructed in the same manner as trailers, as opposed to conventional on-site construction.

MOBILE HOME PARK - Originally, a trailer park, having electrical hookups and water. Modernly, a park-like area having facilities such as complete plumbing and utilities.

MODEL HOME - A home, often decorated, which is shown by a builder to prospective buyers of homes yet to be built. An identical home to the model is then constructed on a lot in the subdivision. The model home is generally sold last.

MOLDING - Long narrow strips of wood or synthetic material, used as a finish piece to cover the crack between the meeting of a wall with a floor or ceiling.

MONEY MARKET - A general term referring to the availability of money for short or long term loans.

MONEY MARKET MUTUAL FUNDS - Funds which invest in the "Money Market", a variety of interest-bearing securities such as treasury bills and bank certificates of deposit. None is invested directly into real property or real property securities.

MONTH TO MONTH TENANCY - A tenancy where no written lease is involved, rent being paid monthly. Some obligations as to notice of moving or eviction may exist by statute.

MONUMENT - A visible, permanent object, marked by a surveyor, to indicate the boundaries of land. May be artificial, such as a post, or natural such as a tree or large stone.

MORATORIUM - A period of suspension of legal rights or remedies. In real estate terms, most commonly used by governmental agencies (usually local) to suspend construction in certain areas until studies are completed to determine the best use for the land involved.

MORTAR - A material used in masonry work as the "glue" holding stones or bricks together. It is composed of lime, cement, sand and water and hardens when it dries.

MORTGAGE - To hypothecate as security, real property for the payment of a debt. The borrower (mortgager) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.

MORTGAGE-BACKED SECURITIES - Securities (certificates) which represent an interest in a pool of mortgages. The principal and interest is collected by the securities seller and distributed to the holders of the securities, minus a fee for administering the pool. Since the distributed funds simply pass through the hands of the administrator to the investors, the term "pass-through certificates" is also used.

MORTGAGE BANKER - A company providing mortgage financing with its own funds rather than simply bringing together lender and borrower, as does a mortgage broker. Although the mortgage banker uses its own funds, these funds are generally borrowed and the financing is either short term or, if long term, the mortgages are sold to investors (many times insurance companies) within a short time.

MORTGAGE BOND - A bond issued by a company which is secured by a general mortgage.

MORTGAGE BONDS - Bonds issued by corporations, which offer first mortgages on real property of the corporation as security for the payment of the bonds.

MORTGAGE BROKER - One who, for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security. Also called a loan broker.

MORTGAGE COMPANY - A company authorized to service real estate loans, charging a fee for this service.

MORTGAGEE - The party lending the money and receiving the mortgage. Some states treat the mortgagee as the "legal" owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.

MORTGAGE INSURANCE - Insurance written by an independent mortgage insurance company (referred to as an 'MIC') protecting the mortgage lender against loss incurred by a mortgage default thus enabling the lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price. The Federal Government writes this form of insurance through the FHA and the VA.

MORTGAGE LIFE INSURANCE - A term life insurance policy for the amount of the declining balance of a loan secured by a mortgage or deed of trust. The beneficiary under the policy is the mortgagee. In the event of death (some policies also cover disability) of the insured (mortgagor), the mortgage is paid in full.

MORTGAGE POOL - A group or "pool" of mortgages, an interest in which can be purchased through a securities dealer. Because of market changes in interest rates and points (discounts), early payoffs, and foreclosures, pools have different returns and, therefore, different investment values. The rate of payoffs and foreclosures is called the "speed" of the pool.

MORTGAGE SERVICING - Controlling the necessary duties of a mortgagee, such as collecting payments, releasing the lien upon payment in full, foreclosing if in default, and making sure the taxes are paid, insurance is in force, etc. Servicing may be done by the lender or a company acting for the lender, for a servicing fee.

MORTGAGE WAREHOUSING - A system whereby a mortgage company will hold loans which would ordinarily be sold, in order to sell later at a lower discount. These mortgages are used as collateral security with a bank to borrow new money to loan.

MORTGAGOR - The party who borrows the money and gives the mortgage.

MORTISE -A rectangular opening, cut in wood or other material, to receive a bar of wood or other material for the purpose of securing the two parts in a mortise joint.

MOTEL - Originally, a building near a major highway to accommodate travelers, offering a place to sleep and parking. Over the years motels have come to offer most of the features of hotels, such as restaurants, recreation, etc.

M ROOF - A roof constructed of two double pitched roofs, forming a shape similar to the letter M. Utilizes shorter rafters, making construction easier and allows a lower overall height.

MULLION - A vertical bar separating panes of a window or panels of a door. Also an upright framing member of panels or wainscoating.

MULTIFAMILY DWELLING - (1) A building occupied by more than one family. (2) A building designed as a dwelling for more than four families at the same time.

MULTIPLE LISTING - An exclusive listing, submitted to all members of an association, so that each may have an opportunity to sell the property.

MUNICIPAL CORPORATION - A town, city, or village, incorporated as a political corporation under state statutes. Would not include a county or such political divisions as a district.

MUNIMENTS OF TITLE - Written evidence (documents) which an owner possesses to prove his title to property.

MUTUAL SAVINGS BANK - An institution owned by its depositors, as evidenced by certificates of deposit rather then stock. These institutions are active in long term real estate financing, as opposed to commercial banks, which concentrate more on short term loans.

MUTUAL WATER COMPANY - A company in which the owners are the customers. Stock is issued to the users, who are the organizers of the company.