Canadian Real Estate Glossary Terms: M
Maintenance Fee: A recurring fee paid by owners of condominium units or properties in a housing development to cover the costs of maintaining common areas and shared facilities.
Market Analysis: An assessment of current market conditions and trends to determine the value, potential, or viability of a property or real estate investment.
Market Value: The estimated price that a property would likely sell for on the open market, based on factors such as comparable sales, property condition, location, and current market conditions.
Masonry: A construction technique using bricks, stones, concrete blocks, or similar materials to build structures or walls by bonding them together with mortar or other adhesives. It is a durable and commonly used method in the construction of buildings and other architectural elements.
Master-Planned Community: A large-scale residential or mixed-use development that is carefully designed and organized to include a variety of amenities and land uses within its boundaries. These communities typically feature a cohesive layout, well-defined zoning, recreational facilities, parks, shopping centers, and other planned features to create an integrated and self-contained living environment.
Maximum Financing: The highest amount of funding that a lender is willing to provide for a mortgage or loan, usually expressed as a percentage of the property's value or the borrower's income. It represents the maximum loan-to-value ratio or debt-to-income ratio that the lender is willing to accept for a particular financing arrangement.
Mechanical Systems: The collection of equipment, devices, and components in a building or property that provide essential services related to heating, ventilation, air conditioning (HVAC), plumbing, electrical, and other mechanical functions. These systems are responsible for maintaining comfort, safety, and functionality within the property.
Median Price: The middle value in a list of prices, arranged in ascending or descending order, where half of the prices are higher and half are lower. In real estate, the median price is commonly used to represent the typical or midpoint price of homes or properties sold in a specific area or market.
Mediation: A voluntary and confidential dispute resolution process in which a neutral third party, known as a mediator, facilitates communication and negotiation between two or more parties to help them reach a mutually acceptable agreement. Mediation is often used as an alternative to litigation and can be employed in various areas, including real estate, to resolve conflicts and disputes.
Merged Credit Report: A comprehensive credit report that combines information from multiple credit bureaus into a single document. It provides a consolidated view of an individual's credit history, including their payment history, outstanding debts, credit accounts, and other relevant financial information.
Metes and Bounds: A land surveying method used to describe and define the boundaries of a parcel of land. It relies on a combination of distances (metes) and directions (bounds) to outline the shape and dimensions of the property, typically referencing known landmarks or monuments. Metes and bounds descriptions are commonly used in legal documents and property deeds.
Mixed-Use Development: A real estate project that combines different types of uses, like homes, shops, offices, and recreational areas, all in one place.
Mobile Home: A prefabricated or manufactured dwelling that is designed to be transportable and can be placed on a permanent foundation or a rented lot.
Modification: An alteration or change made to an existing agreement, such as a loan or lease, to adjust certain terms or conditions. It involves adjusting aspects such as interest rates, repayment schedules, or other provisions to better suit the needs of the parties involved.
Modified Gross: A type of lease agreement in which the tenant pays a base rent amount that includes some or most of the operating expenses, such as property taxes, insurance, and maintenance. However, the tenant may still be responsible for certain additional expenses, such as utilities or janitorial services, as specified in the lease.
Modular Home: A type of prefabricated or factory-built home that is constructed in sections or modules and assembled on-site.
Mortgage: A loan obtained from a financial institution to finance the purchase of a property, with the property serving as collateral for the loan.
Mortgage Acceleration Clause: A provision in a mortgage agreement that allows the lender to demand full repayment of the outstanding loan balance if certain conditions are not met. This clause typically comes into effect when the borrower fails to make timely mortgage payments or breaches other specified terms of the mortgage contract.
Mortgage Banker: A financial institution or individual that originates and funds mortgage loans using its own funds or by acting as an intermediary between borrowers and lenders. Mortgage bankers facilitate the loan process by assisting borrowers with application, underwriting, and approval, and may also service the loans after closing.
Mortgage Broker: A licensed professional who assists borrowers in finding and securing mortgage loans from various lenders.
Mortgage Insurance: Insurance coverage that protects the lender in case the borrower defaults on the mortgage loan.
Mortgage Lender: A financial institution or individual that provides funds to borrowers for the purpose of purchasing or refinancing real estate. Mortgage lenders evaluate the creditworthiness of borrowers, determine loan terms and interest rates, and disburse the loan funds. They may be banks, credit unions, mortgage companies, or other specialized lending institutions.
Mortgage Life Insurance: A type of life insurance policy specifically designed to pay off a borrower's mortgage balance in the event of their death. The coverage amount typically decreases over time, aligning with the declining mortgage balance, and is intended to provide financial protection for the borrower's family or dependents by ensuring the mortgage debt is cleared in case of the insured's passing.
Mortgage Pre-Approval: The process of getting preliminary approval from a lender for a mortgage loan, based on an evaluation of the borrower's financial situation.
Mortgage Term: The specified period of time during which the borrower is bound by the terms and conditions of a mortgage loan, such as the interest rate and repayment schedule.
Move-In Ready: Refers to a property that is in a condition suitable for immediate occupancy without the need for major repairs or renovations.
Move-Up Buyer: A term referring to a homebuyer who is selling their current residence to purchase a larger or more expensive property. Move-up buyers typically have already entered the housing market and are seeking to upgrade their living situation, often due to changing needs or increased financial capacity.
Multifamily Mortgage: A type of mortgage loan specifically designed for the purchase or refinancing of properties that contain multiple residential units, such as apartment buildings or condominium complexes.
Multiple Dwelling: A building or structure that contains multiple separate living units, such as apartments or condominiums.
Multiple Listing Service (MLS): A database used by real estate agents and brokers to share property listings and facilitate cooperation and compensation among agents.
Multiple Offers: A situation in which a seller of a property receives more than one offer from potential buyers at the same time. This can create a competitive bidding environment, where buyers may try to outbid each other in order to secure the property. The seller can evaluate and compare the different offers to determine the most favorable terms and price for the sale.
Municipal Assessment: The value assigned to a property by the local municipality for the purpose of calculating property taxes.
Mutual Consent: An agreement reached between two or more parties without any coercion or undue influence, typically used in the context of contract formation.