"M & N" Vocab

Question 1

Market Data Approach

Answer 1

a method of estimating the value of a property by comparing it to similar properties recently sold and making monetary adjustments for the differences between the subject property and the comparable property

Question 2

Mechanics Lien

Answer 2

a statutory lien created to secure payment for those who supply labor or materials for the contruction of an improvement to land

Question 3

Metes and Bounds

Answer 3

a method of describing a parcel of land using direction and distance

Question 4

Mortgage

Answer 4

a written instrument that pledges property to secure payment of a debt obligation as evidenced by a promissory note. A mortgage creates a lien against the title to a property

Question 5

MLS … multiple listing service

Answer 5

the method of marketing a property listing to all participants in the MLS

Question 6

mutual recession

Answer 6

and agreement by all parties to a contract to release one another from the obligations of the contract

Question 7

Negative Amortization

Answer 7

occurs when an ARM is allowed to fluctuate independently of a required minimum payment. A gradual increase in mortgage debts happens when the mo payment isnt large enough to cover the entire prinicipal and interest due. Shortfall is added to remaining balance to create negative amortization

Question 8

Net Income

Answer 8

Income produced by a property calculated by deducting operating expenses from gross income

Question 9

Net Lease

Answer 9

a lease that requires the tenant to pay maintenance and operating expenses, as well as rent

Question 10

Non Conforming Use

Answer 10

a use of land this is permitted to continue, or grandfathered, even after a zoning ordinance is passed that prohibits the use

Question 11

Novation

Answer 11

the subsitution of a new contract for an existing one; the new contract must reference the first and indicate that the first is being replaced and no longer has any force and effect