Real Estate Definitions
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Macroeconomics A study of the economy as a whole, particularly the interaction of its various components. Maintenance Fee A periodic assessment or charge that residents pay to their homeowner's or condo association to pay for the maintenance and repairs of common areas. Manufactured Housing Homes that are preconstructed in a factory then transported and assembled to a lot where they are placed temporarily or permanently. Styles vary from modest trailers to homes that look as if they were built on site. Margin The amount (expressed as percentage points) that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent. Marital Deduction For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free. Market Conditions Factors that can affect the sale of homes in a certain area. Such factors include interest rates, the unemployment rate, home appreciation, weather, time of year, etc. Market Value The estimated value of a property that an owner can expect to receive if he or she sells under normal conditions. Also known as "Fair Market Value." MasterCard A credit card issued by MasterCard International which is distributed by many financial institutions around the world. Card holders use the card to borrow money against a credit line. The funds must be repaid and interest is charged if a balance is carried from month to month. Maturity The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal. Maximum Financing A loan given for a property where the buyer puts down the lowest allowable down payment possible. Meals and Entertainment Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada). Mechanical Systems The heating, cooling, plumbing, and electrical systems within a house or building. Median Price In a specific area, the amount paid for a property where half of the properties in the area sell for less and half sell for more. Mediation A method for resolving a dispute using a neutral third party (a "mediator") who works to resolve the differences of those in the dispute. A mediator cannot make a binding decision, whereas an arbitrator can. Merged Credit Report A summary of a person's credit history from the big two credit bureaus: Equifax and Trans Union. Metes and Bounds The legal description of a piece of land as defined by a surveyor who uses measurements and angles. Microeconomics The study of the individual parts of the economy, with emphasis given to the market process and how it works. Mileage Allowance The number of miles a leased vehicle can be driven over the life of the lease. Mileage allowance is detailed in the lease agreement. Mileage Limitation See "Mileage Allowance." Mill Rate A unit of taxation that is a set ratio made by the city or municipality in reference to property taxes. Minimum Average Balance to Avoid Fees The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount, the account holder is subject to the monthly charge and/or per usage transaction charges. Minimum Balance to Avoid Fees The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount, the account holder is subject to the monthly charge and/or per usage transaction charges. Minimum Balance to Open an Account The minimum initial deposit required to open a bank account. Minimum Monthly Balance The least amount of money in a bank account during an entire month. Minimum Payment The minimum amount a cardholder must pay to keep the account from defaulting. Some card issuers set high minimums if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of three to five percent of the outstanding balance. Mint Condition The state or appearance of a building, vehicle, or item that is like brand new. Mixed-income Housing A community or neighborhood where the residents earn wages and salaries that vary drastically. Modification Altering or making changes to the terms of a loan agreement. Monetary Policy The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply. Money Factor A leasing term that expresses the cost of borrowing. It is similar to the interest rate paid on a conventional vehicle loan, but is expressed as a difficult-to-understand fraction. To convert the money factor to a recognizable interest rate, multiply it by 24. For example, a money factor of .00345 x 24 = 9 percent interest. The money factor is negotiable, and consumers who lease a new vehicle should look for a money factor close to the current interest rate charged for new-vehicle loans. Money Laundering A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those dealing narcotics dealers who need to legitimize illegally earned funds. Money Market Account A bank account that restricts the type and number of withdrawals. The account also earns interest similar to money market funds. Money Market Funds A mutual fund that invests in short-term debts. Money Market Mutual Fund A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CD's. Also referred to as money market fund (MMF). Monthly Periodic Rate The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12. See also "Periodic Rate." Mop and Glow A term used in the automobile industry that refers to add-ons such as paint sealant. These add-ons do not increase the value of the vehicle, but they increase profits for the dealer. Mortgage A temporary and conditional agreement that stipulates the use of real property as collateral to a creditor for the guaranteed repayment of a loan. The mortgage incurs a rate of interest that varies according to term and other loan features. Mortgage Acceleration Clause A provision or clause in a loan agreement that allows a lender to demand full payment of the loan balance under certain circumstances. Such circumstances can include the sale of the property, loan default, or mortgage refinancing. This clause is not commonly used in Canada or by Canadian lenders. mortgage assumption Taking responsibility for an existing property loan. Mortgage Banker An individual who finds and offers financing for the general public through one institution's guidelines and products. Mortgage Broker An individual who finds clients perspective lenders at no charge. Mortgage Brokers have special relationships with lenders and can offer clients the best rates and service in Canada. CanEquity goes to great lengths to ensure our clients are serviced by the best Mortgage Brokers in the country. Mortgage Disability Insurance An insurance policy that pays the monthly mortgage payment for the insured individual if he or she becomes disabled. The disability must be one that is covered under the policy and payments are only made for a specified amount of time. Mortgage Insurance In Life insurance, a policy covering a mortgagor from which the benefits are intended (1) to pay off the balance due on a mortgage upon the death of the insured, or (2) to meet the payments on a mortgage as they become due in the case of death or disability. Also called "Mortgage Redemption Insurance." Mortgage Lien A legal claim against a mortgaged property which must be paid when the property is sold. Mortgage Life Insurance A term policy that pays off an entire mortgage if the borrower passes away. See also "Mortgage Insurance." Mortgage Rate The interest rate on a mortgage loan. Mortgage Renewal In the mortgage industry, renewal refers to ending an existing mortgage term and signing a new term for the continuation of the mortgage. Mortgagee The lender in a mortgage transaction. Mortgagor The borrower in a mortgage transaction. Motivated Buyer A prospective buyer with strong personal reasons who must purchase a property quickly. A strong motivation to buy is generally due to time restraints. Motivated Seller A property owner who has an urgent need to sell his or her property quickly. Sellers are often motivated for a fast sale because of time restraints or financial difficulties. Move-in Condition When the new owner or occupant is given the go ahead to move in, the property is said to be in move-in condition. This means construction is completely finished, all the touch ups are done, the appliances are in working order, and the property has been thoroughly cleaned making it ready for occupancy. Move-up Buyer A homeowner who sells his or her property in order to purchase a more expensive home. The homeowner is basically upgrading. Moving Expenses Expenses incurred when an individual moves for employment purposes. Moving expenses are deductible if they are the reasonable costs of moving yourself, your family, and your possessions. The cost of meals while moving is not longer deductible. MSRP Refers to the Manufacturer's Suggested Retail Price. In the automobile industry, the MSRP is typically the selling price for a vehicle and its options. Multi-Family A building or dwelling that has more than four residential units. Multiple Listing Service (MLS) A database, provided by the Board of Realtors, that lists all properties in an area that are for sale or lease by realtors. This database excludes properties that are for sale by owner. |
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