What Does “MOL” Mean in Real Estate? A Complete Guide for Buyers and Sellers

 

Introduction 

In the realty world, there is no shortage of industry-specific jargon, and "MOL" certainly is no different. MOL is an abbreviation for "More or Less." You will find this term used in property listings, sales contracts, and appraisals. It is, though it appears as a simple abbreviation, an enormous player in property descriptions, especially the critical real outline of the boundaries, measurements, and features of a property. Throughout the course of this guide, we will break down what MOL means, why it's applied, and how it affects buyers and sellers within real estate trading. By the end, you will know exactly what to watch out for when you see MOL in a listing.

What Does "MOL" Mean in Real Estate?

The initials "MOL" in real estate stand for "More or Less," a phrase used to denote that certain property details  are approximate. When it lists a property as having "5 acres MOL" or "2,000 square feet MOL," all it means is the property may, in fact, be a bit larger or smaller than what was listed. MOL is frequently used on rural properties, large tracts of land, or older properties where actual size data might be hard to get.

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Example: An ad for property reads, "2.5 acres MOL." This means that the property is 2.5 acres more or less, thus allowing the possibility of it being a bit larger or smaller than 2.5 total acres.

MOL is one way expectations are managed because the figures one is providing might not necessarily be exact. This particularly comes into play for areas where the boundary between lands may not be well defined, or there are minor discrepancies in measurement due to surveying methods, natural changes, or even historical inaccuracies.

Why Is MOL Used in Real Estate?

1. Limitations of Survey and Historical Data

In most cases, the property area is not available, especially for older properties or rural lands, and may be outdated. The boundary lines are not well-defined, and the surveys are different according to the techniques and equipment used. The term MOL allows Realtors to indicate that a property is approximately of a certain size without guaranteeing that exact measurement.

Example: The boundaries may change along with time through natural changes, such as erosion or overgrowth of trees, in rural areas. MOL covers these slight changes without having to re-measure the property every other week. 2. Flexibility in Negotiations

MOL can give some latitude to both buyers and sellers in negotiations. MOL would be quite common in property sales, especially in the cases of large parcels of land, to cover small deviations in size. Such an approach might help a seller to give an approximate value while leaving some room for minor discrepancies that can save them from possible disputes with a buyer over the exact acreage or square footage.

Tip: If there is an MOL and you are the buyer, then it would be in your best interest to request a current survey of the property boundaries for an exact measurement before closing on a sale.

3. Adherence to Local Real Estate Laws

Because many states and regions have rules regarding how property sizes are to be represented in listings-when exact measurements are not known, for example-MOL helps satisfy those requirements by providing a method of listing approximate measurements without the risk of misrepresenting the property size. It is a legal protection serving to protect real estate agents and providing reasonable expectation for buyers.

Pro Tip: Before you begin to rely on MOL, check with local real estate regulations for what allowances are common in your area.

How MOL Affects Buyers and Sellers

For Buyers

If you are purchasing a property listed with MOL, then you need to consider the fact that size, boundary, or square footage may slightly differ than that in the listing. Here are some key things to consider:

Request a New Survey: If MOL is used for land or property size, request a new survey. This might mean a lot to buyers who may use the land for specific purposes, such as farming, development, and even backyard space.

Property Boundaries: If you have rural or large properties, knowing the precise boundaries will give you advanced notice and allow you to avoid disputes with neighboring properties in the future.

Use in Negotiations: Knowing the size is approximate may provide some wiggle room in negotiating the price of the property should the actual size not meet perceived expectations.

Example: You are buying a property described as "10 acres MOL." You then have a survey that reflects the property is 9.8 acres. That would make a difference with regard to what you pay for the property.

For Sellers

If you're selling a property and using MOL, it pays to be transparent with the term and what it actually means.

Set Realistic Expectations: If the size of your property has changed over time-or if it has simply been a long time since the last survey was done-invest in an updated survey that adds some real value and clarity to your listing. Let buyers know up front that the size of a property is approximate, so that you can avoid misunderstandings.

Legal Protection: Using MOL in your listing provides you with legal protection since it lets buyers be very aware that measurements are approximate and will help avoid disputes if actual measurements are a little different.

Example: If you are listing an older property with shifting boundaries, one practical way for you to account for minor discrepancies in size is through the use of MOL.

When to Be Cautious About MOL in Real Estate

While MOL is common and acceptable, there are occasions where it's best to exercise caution, especially for the buyer. Instances in which extra care should be taken include:

Buying Land for Development: You may want to develop the land. A small discrepancy in acreage or square feet can have major implications. You need a new survey to make sure the property will meet your needs for development.

High-Value Properties: High-value properties depend on each square foot in determining the complete value of such properties. If you are buying or selling real estate at a premium, make sure to double-check the measurements given so as not to have any discrepancy in the final sales price.

Shared Boundaries and Property Lines: Properties sharing boundaries in subdivisions or a residential community have to have defined borders; otherwise, this may rise to future disputes with neighbors. In these cases, MOL would not be the best choice.

How the Buyer Can Take Appropriate Steps When They Find MOL in Listings

When you are a buyer, you happen to notice there is MOL within a property listing. The following are some practical steps that you can take:

Questions: This is where you wouldn't be afraid to ask the real estate agent why it is an MOL. Maybe the reason behind it was because of historical measurements or even because of an old survey.

Order a Survey: If the size or boundary of the property is so crucial to you, then you should strongly consider getting a survey done. That way, you know what you are actually buying.

Discuss Price Adjustment: For properties whose size considerably differs from the listed MOL, you would have a good reason for negotiating a price adjustment based on the new measurement.

Example: You are buying a home that has 2,000 square feet MOL. A new measurement comes in, showing 1,950 square feet. This is where you'd want to negotiate for a reduced price.

Understand Legal Implications: While in some areas MOL might be used to protect the seller, it's always a good idea to know any legal implications in your area regarding approximate property descriptions. For that, a real estate attorney will be in a position to provide some insight should you not be certain.

Real-Life Examples of MOL in Real Estate Listings

To explain how MOL works in property, here are a few examples of how it pops up in real listings and what it means for buyers and sellers alike.

"5 Acres MOL on Beautiful Farmland": In this example, the word MOL is referring to farmland, which would roughly be about 5 acres in size but could have slight deviations.

"1,500 sq ft MOL Ideal for a Small Family": The advertisement here describes the size of the home as around 1,500 square feet and therefore an approximation.

"2-Bedroom Cottage 900 sq ft MOL: In this case, the cottage size is around 900 square feet and thus gives some buyers an idea about unit size.

In each case, MOL creates an expectation while establishing that slight size variances may be possible.

Conclusion: Recognize and take appropriate decisions whenever you come across MOL.

MOL allows flexibility in and clarifies property transactions in real estate. Buying: With MOL, it can be understood that property measurements will slightly vary, so this sets realistic expectations when buying properties in rural areas or with older properties. For sellers, the inclusion of MOL in a listing is important because of the legal protection and transparency it offers. MOL generally refers to an approximation, and it's always wise to ask for a survey if you require precise measurements for planning, development, or personal preference.

After all, MOL is a helpful term that roots both buyers and sellers through the maze of property measurements without finding oneself bound by inflexible specifications. By knowing how it works, and making educated steps towards questions, surveys, and knowing your rights, you can make a secured decision on an investment in real estate. 

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FAQ

Q: What does MOL mean in real estate?

A: MOL means "More or Less," indicating the size or measurements of the property listed are approximate.

Q: Is MOL legally binding in real estate contracts?

A: MOL is generally accepted in real estate contracts. However, exact boundaries are legally binding if they are clearly defined in a survey or deed.

Q: Should I get a survey if the listing says MOL?

A: Yes, it would be a good idea to have a survey if you need exact measurements, mainly if the size of the property affects your decision to buy.

Q: If the MOL size varies from the survey size, can I negotiate price?

A: Yes, you do have grounds to perhaps adjust the price if there is a difference from the MOL size when you do the survey.