Business / Real Estate Glossary

Loan Fees: Also called loan origination fees. Costs charged by a lender for giving out a loan, may include points, tax service fees, an appraisal fee, etc.

Loan Origination Fee: The processing of a mortgage application is known as loan origination. When a mortgage loan is originated, a loan origination fee, or transfer fee, is charged by most lenders to cover the ex . . . View Full Definition

Loan-To-Value Ratio: The relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral.

Lock-In Clause: A condition in a promissory note that prohibits prepayment of the note.

Longitude: Distance measured east or west on the earths surface, measured by the angle which the meridian through a place makes with some standard meridian, as that of Greenwich, Great Britain or Paris . . . View Full Definition

Lot-And-Block (Recorded Plat) System: A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat.

Low-Doc Or No-Doc Loan: Loans that require little or no documentation regarding the borrowers income, assets or liabilities. Because of the higher perceived risk, these loans will usually require a larger down paym . . . View Full Definition

Low-E Glazings: Low-e glazings have special coatings that reduce heat transfer through windows. This type of window film is inexpensive, lasts 10-15 years, reduces interior fading, and saves energy.

Loyalty: The duty of loyalty requires the agent to place the principals interests above those of all others, including the agents own self-interest. The agent must be particularly sensitive to any po . . . View Full Definition

M1, M2, M3: Three measurements of the United States money supply. M1, or the basic money supply, consists of cash in public hands, private checking accounts, credit union share accounts and demand depos . . . View Full Definition

Maintenance Charges: Monthly or annual charges assessed in a condominium, planned united development, or cooperative development to cover operational costs.

Maker: The maker of a check is known as the drawer.

Management: Refers to the amount of personal or hired time, it takes to run the investment.

Management Agreement: A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the managers authority.

Management Plan: The financial and operational strategy for the ongoing management of a property. It is based on market analysis, a property analysis and the owners goals.

Manifest System: Tracking of hazardous waste from cradle to grave (generation through disposal), with accompanying documents known as manifests.

Manufactured Home: A structure (transportable in one or more sections) when in the traveling mode, is eight body feet or more in width, or 40 body feet or more in length, or, when erected on site, is 320 or mo . . . View Full Definition

Margin: In an adjustable-rate loan, the amount added to the index rate that represents the lenders cost of doing business (including costs, profits and risk of loss of the loan). Generally the margi . . . View Full Definition

Market: A place where goods can be bought and sold and a price established.

Market Analysis: A regional and neighborhood study of economic, demographic and other factors made to determine supply and demand, market trends, and other factors important to leasing and operating a specif . . . View Full Definition

Market Approach: A method of pricing single-family rental homes and condos using comparable market data. When pricing multiple unit rental properties, the income approach is probably better.

Market Value: The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. Such such conditions include the assumption that the buyer and . . . View Full Definition

Market-Data Approach: Estimating a propertys value based on a comparison of the property with similar properties in the same locale that have sold recently. Also known as the direct sales comparison approach.

Marketable Title: Good or clear title, reasonably free from the risk of litigation over possible defects.

Masonry: Any construction material involving bricks/blocks and mortar or related materials.

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