MAINTENANCE
- The care and work put into a building to keep it in operation and
productive use; the general repair and upkeep of a building. If maintenance
is deferred, the building will suffer a loss in value.
MALL
- A landscaped public area set aside for pedestrian traffic.
MARGINAL LAND
- Land which is of little value because of some deficiency, such as
poor access, lack of adequate rainfall, or steep terrain.
MARKETABLE TITLE
- Good or clear title reasonably free from risk of litigation
over possible defects; also referred to as merchantable title. Marketable
title need not, however, be perfect title.
MARKET VALUE
- The highest price, estimated in terms of money, which a property will
bring if exposed for sale in the open market, allowing a reasonable
time to find a purchaser who buys with knowledge of all the uses to
which the property is adapted and for which it is capable of being used.
MASTER PLAN
- A comprehensive plan to guide the long-term physical development
of a particular area.
MEANDER LINE
- An artificial line used by the surveyors to measure the natural,
uneven, winding property line formed by rivers, streams and other watercourses
bordering a property.
MECHANIC'S LIEN
- A statutory lien created in favor of material men and mechanics to
secure payment for materials supplied and services rendered in the improvement,
repair or maintenance of real property.
METES AND BOUNDS
- A common method of land description that identifies a property by
specifying the shape and boundary dimensions of the parcel, using terminal
points and angles.
MILITARY CLAUSE
- A clause inserted in some residential leases to allow the military
tenant to terminate the lease in case of transfer, discharge or other
circumstances making termination appropriate.
MINERAL RIGHTS
- Rights to subsurface land and profits. Normally, when real
property is conveyed, the grantee receives all right and title to the
land including everything above and below the surface, unless excepted
by the grantor.
MISREPRESENTATION
- A false statement or concealment of a material fact made with the
intent to induce some action by another party.
MONEY -
The cash deposit (including initial and additional deposits) paid by
the prospective buyer of real property as evidence of his good faith
intention to complete the transaction; called hand money or a binder
in some states.
MONTH-TO-MONTH TENANCY
- A periodic tenancy where the tenant rents for one month at a time.
In the absence of rental agreement (oral or written), a tenancy is deemed
to be month-to-month, or in the case of boarders, week-to-week.
MONUMENTS
- Visible markers, both natural and artificial objects, which are used
to establish the lines and boundaries of a survey.
MORTGAGE -
A legal document used to secure the performance of an obligation. In
effect, the mortgage states that the lender can look to the property
in the event the borrower defaults in payment of the note.
MORTGAGE BANKER
- A corporation or firm which normally provides its own funds for mortgage
financing.
MORTGAGE BROKER
- A person or firm which acts as an intermediary between borrower and
lender; one who, for compensation or gain, negotiates, sells or arranges
loans and sometimes continues to service the loans.
MORTGAGEE
- The one who receives and holds a mortgage as security for a debt;
the lender; a lender or creditor who holds a mortgage as security for
payment of an obligation.
MORTGAGOR
- The one who gives a mortgage as security for a debt; the borrower;
usually the landowner; the borrower or debtor who hypothecates or puts
up his property as security for an obligation.
MULTIPLE LISTING
SERVICE (MLS) - An organization created by Realtors to facilitate
the sharing of listings among member brokers.
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N
NATIONAL ASSOCIATION
OF REALTORS - Formerly known as the National Association
of Real Estate Boards (NAREB), it is the largest and most prestigious
real estate organization in the world.
NEGATIVE CASH FLOW
- The investment situation where cash expenditures to maintain
an investment (taxes, mortgage payments, maintenance, etc.) exceed the
cash income received from the investment.
NEGOTIABLE INSTRUMENT
- Any written instrument which may be transferred by endorsement or
delivery so as to vest legal title in the transferee.
NEGOTIATION
- The transaction of business aimed at reaching a meeting of
minds among the parties; bargaining.
NET INCOME
- The sum arrived at after deducting from gross income the expenses
of a business or investment, including taxes and insurance, and allowances
for vacancy and bad debts; what the property will earn in a given year's
operation.
NET LEASE
- A lease, usually commercial, whereby the lessee pays not only the
rent for occupancy, but also pays maintenance and operating expenses
such as tax, insurance, utilities and repairs. Thus the rent paid is
"net" to the lessor.
NET WORTH -
The value remaining after deducting liabilities from assets.
NOMINAL CONSIDERATION
- A consideration bearing no relation to the real value of the contract.
A deed often recites a nominal consideration, such as "ten dollars
and other valuable consideration."
NON-COMPETITION
CLAUSE - A provision in a contract or lease prohibiting a
person from operating or controlling a nearby business which would compete
with one of the parties to the contract.
NONCONFORMING USE
- A permitted use which was lawfully established and maintained
but which no longer conforms to the current use regulations because
of a change in the zoning.
NONDISTURBANCE CLAUSE
- A clause inserted in a mortgage whereby the mortgagee agrees not to
terminate the tenancies of lessees who pay their rent if the mortgagee
forecloses on the mortgagor-lessor's building.
NORMAL WEAR AND
TEAR - That physical deterioration which occurs in the normal
course of the use for which a property is intended, without negligence,
carelessness, accident or abuse of the premises (or equipment or chattels)
by the occupant, members of household, or their invitees or guests.
NOTE -
A document signed by the borrower of a loan, stating the loan amount,
the interest rate, the time and method of repayment and the obligation
to repay. The note is the evidence of the debt. When secured by a mortgage,
it is called a mortgage note.
NOTICE
- (1) Legal notice is notice which is required to be made by law, or
notice which is imparted by operation of law as a result of the possession
of property or the recording of documents. (2) Notice which is required
by contract, for example, when the parties agree to terminate a contract
by the written notice of either party 30 days prior to termination.
NOTICE OF COMPLETION
- Document filed to give public notice that a construction job has been
completed and that mechanics' liens must be filed within ,say, 45 days
to be valid.
NOTICE OF DEFAULT
- A notice to a defaulting party that there has been a default, usually
providing a grace period in which to cure the default.
NOTICE OF NONRESPONSIBILITY
- A legal notice designed to relieve a property owner from responsibility
for the cost of improvements ordered by another person.
NOTICE TO QUIT
- A written notice given by a landlord to his tenant, stating that the
landlord intends to regain possession of the leased premises and that
the tenant is required to quit and remove himself from the premises
either at the end of the lease term or immediately if there is a breach
of lease or if the tenancy is at will or by sufferance; sometimes refers
to the notice given by the tenant to the landlord that he intends to
give up possession on a stated day.
NOVATION -
The substitution of a new obligation for an old one; substitution of
new parties to an existing obligation, as where the parties to an agreement
accept a new debtor in place of an old one.
NUISANCE -
Conduct or activity which results in an actual physical interference
with another person's reasonable use or enjoyment of his property for
any lawful purpose.
NULL &
VOID - Having no legal force or effect; of no worth; unenforceable;
not binding.
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O
OBSOLESCENCE
- A type of depreciation of property.
OFFER -
A promise by one party to act or perform in a specified manner provided
the other party will act or perform in the manner requested.
OFFER AND ACCEPTANCE
- The two components of a valid contract; a "meeting of the minds."
OFFICE EXCLUSIVE
- A listing in which the seller refuses to submit the listing to Multiple
Listing Service, even after being informed of the advantages of MLS,
and signs a certification to that effect.
OFFSITE COSTS
- Costs such as for sewers, streets, utilities, etc., which are incurred
in the development of raw land, but are not connected with the actual
construction of the buildings (onsite costs).
OPEN-END MORTGAGE
- A mortgage in which the borrower is given a limit up to which he may
borrow, with any incremental advances of money up to but not exceeding
the original borrowing limit to be secured by the same mortgage.
OPEN HOUSE
- The common real estate practice of showing a listed home to the public
during established hours, frequently on Sunday afternoons.
OPEN LISTING
- A listing given to any number of brokers. The first broker who secures
a buyer ready, willing and able to purchase at the terms of the listing
is the one who earns the commission.
OPEN SPACE -
Certain portion of the landscape which has not been built upon and which
is sought either to be reserved in its natural state or used for agricultural
or recreational purposes (such as parks, squares, and the like).
OPERATING EXPENSES
- Those periodic and necessary expenses which are essential to the continuous
operation and maintenance of a property.
OPINION OF TITLE
- An opinion by a person competent in examining titles, usually
a title attorney, as to the status of the title of a property.
OPTION -
An agreement to keep open, over a set period, an offer to sell or purchase
property.
ORIGINATION FEE
- The finance fee charged by a lender for placing a mortgage,
which covers initial costs such as preparation of documents and credit,
inspection and appraisal fees.
OVERIMPROVEMENT
- An improvement which by reason of excess size or cost is not
the highest and best use for the site on which it is placed.
OVERRIDE
- A commission paid to managerial personnel (e.g. principal broker)
on sales made by their subordinates, usually calculated as a percentage
of the gross sales commissions earned by the salesperson.
