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Ma Real Estate M-2&N
Terms & Definitions M-2 & N
Term | Definition |
---|---|
Mineral Rights | Subsurface rights to real property. May be granted separately from surface rights as in rights to oil, gas, and minerals. |
Mortgage | A conditional conveyance of property as security for a loan (mortgage deed). |
Mortgage Buydown | The lender will allow the borrower to pay 1 or more points at closing in return, for a lower initial interest rate for 1 or more years. The borrower may then qualify for a larger mortgage loan. |
Mortgage Deed | Conditional conveyance of the property to the bank subject to the borrowers right of redemption. Referred to as the “mortgage”. |
Mortgage Note | The written promise to pay money borrowed against real property as security. |
Mortgagee | Party lending money with property as security. EXAMPLE: A bank. |
Mortgagor | Party borrowing money with property as security. EXAMPLE: Buyer or borrower. |
Multiple Listing | A listing placed in a Multiple Listing Service (M L S), where member brokers agree to share a listing with one another. |
Negative Amortization | A mortgage where the monthly payment agreed to does not cover the interest charged. The difference is then added to the principle balance. |
Net Income | Gross income (total revenue) less expenses. |
Net Lease | A lease where a lessee (tenant) pays a fixed rate plus other expenses. (Also known as Triple Net when tenant pays taxes, insurance, and other operating expenses). |
Net Listing | A listing where the seller is to receive a certain amount, and the broker retains anything above that amount as a fee. Illegal in Mass. |
Non-Freehold Estate | An estate for definite period of time; a lease. As compared to a Freehold Estate as in a deeded transfer of title. |
Novation | A new obligation is substituted for an old obligation. EXAMPLE: A bank accepting a new note with a new mortgagor, for an old note would do so by novation. |