Page 626 - Principals of Real Estate

618 California Real Estate Principles
GLOSSARY monetary policy
The actions taken by the federal government to influence
the availability and cost of money and credit as a means of
promoting national economic goals.
money encumbrance
An encumbrance that affects the title.
month-to-month tenancy
A tenant rents property for a month at a time, under a periodic
tenancy that continues for successive months until terminated
by proper notice.
monument
A fixed landmark used in a metes and bounds land description.
mortgage (hipoteca)
A legal document used as security for a debt.
mortgage banker
A person whose principal business is the originating financing,
closing, selling, and servicing of loans secured by real property
for institutional lenders on a contractual basis.
mortgage loan disclosure statement
A statement that informs the buyer of all charges and expenses
related to a particular loan.
mortgage yield
The amount received or returned from an investment expressed
as a percentage.
mortgage-backed securities
Pools of mortgages used as collateral for the issuance of securi-
ties in the secondary market.
mortgagee (acreedor hipotecario)
The lender under a mortgage.
mortgagor (deudor hipotecario)
The borrower under a mortgage.
multiple-listing service
A cooperative listing service conducted by a group of brokers
(usually members of a real estate association) to provide an
inventory of all available properties in the area.
mutual assent
(1) An agreement between the parties in a contract. (2) The
offer and acceptance of a contract.
mutual consent
(1) The offer by one party and acceptance by another party.
(2) Also known as mutual assent or meeting of the minds.
mutual mortgage insurance
A fee for an insurance policy charged to the borrower to
protect lender under an FHA loan, in the event of foreclosure
on the property.
mutual rescission
When all parties to a contract agree to cancel an agreement.
mutual water company
A water company organized by or for water users in a given
district with the object of securing an ample water supply at a
reasonable rate; stock is issued to users.
N
naked legal title
Title lacking the rights and privileges commonly associated
with ownership may be held by trustee under a trust deed.
narrative appraisal
A summary of all factual materials, techniques, and appraisal
methods used by the appraiser in setting forth his or her value
conclusion.
NDFA
The mnemonic for No Darn Fooling Around.
negative amortization
Occurs when monthly installment payments are insufficient
to pay the interest, so any unpaid interest is added to the
principal due.
negligent misrepresentations
Untrue statements made without facts to back them up.
negotiable
Capable of being negotiated, assignable or transferable in the
ordinary course of business.
negotiable instrument
Any written instrument that may be transferred by endorsement
or delivery.
net lease (arrendamiento neto)
The tenant pays an agreed-upon sum as rent, plus certain
agreed-upon expenses per month (i.e., taxes, insurance and
repairs).
net listing
An employment contract in which the commission is not
definite. The broker receives all the money from the sale of the
property that is in excess of the selling price set by the seller.
The broker must disclose the selling price to both buyer and
seller within 30 days after the transaction.
net operating income (NOI) (ingreso neto de
operación)
The balance remaining after deducting gross receipts of all
fixed expenses.
net worth
The value of all assets minus all liabilities.
neutral depository
An escrow business conducted by someone who is a licensed
escrow holder.