The real estate industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. With this in mind, the experts at Commonwealth Land Title Insurance Company have compiled the following glossary of terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
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Market Value –

The average of the highest price that a buyer, willing but not compelled to buy, would pay and the lowest price a seller, willing but not compelled to sell, would accept.



Mechanic’s Lien –

A lien on real estate, created by operation of law, that secures the payments of debts due to persons who perform labor or services or furnish materials incident to the construction of buildings and improvements on the real estate.



Metes and Bounds –

A land description in which boundaries are described by courses, direction, distances and monuments.



Mortgage –

A conditional pledge of property to a creditor as security for the payment of a debt.



Mortgage Insurance –

Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price.



Mortgagee –

The holder of a mortgage. The party to whom a mortgage is made, generally the lender.



Mortgagee Policy –

See Loan Policy.



Mortgagor –

A person who mortgages property. A person who executes a mortgage, generally the property owner.



Multiple Listing –

The pooling in a central bureau of listings of properties for sale. These listings are held individually by members of a group of real estate brokers, with the agreement that any member of the group may sell the properties and, in the case of a sale, the commission will be divided between the broker making the sale and the broker who filed the listing.