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Legal Term |
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Lanai
The Hawaiian word for a porch or balcony.
This room-like area is usually covered and
may be enclosed on one or more sides.
Land
Contract
A contract used in the sale of real property
when the seller wishes to retain legal title
until all or a certain part of the purchase
price is paid by the buyer. It is also referred
to as an installment sales contract or an
agreement of sale.
Land
Sales Contract
A contract for the sale of property, by which
possession is delivered to the buyer, but
title remains with the seller until full payment
or the satisfaction of other stated conditions.
Landlocked
Property totally surrounded by other property
with no means of ingress or egress.
Landlord
The person who leases property; the owner
of the property.
Lease
A contractual agreement between a property
owner and a tenant that specifies the payment
and conditions under which the tenant may
possess the real estate property for a specified
period of time.
Lease
Purchase Option
An alternative financing option that allows
home buyers to lease a home with an option
to buy. Each monthly rent payment may consist
of an amount for rent, plus an additional
amount which can be applied toward the down
payment on an already specified purchase price.
Leasehold
Estate
A tenant’s right to use a property for
a fixed period of time - If you pay rent,
you hold a leasehold estate, commonly called
a lease or leasehold. This means that you
can freely live and use the facilities of
a rented property, which can be an apartment,
house or condo, under the terms of a lease
until it expires.
Legal
Description
A property description, recognized by law,
that is sufficient to identify and locate
a property by reference to government surveys
or approved recorded maps.
Lender
A firm who makes a loan or the individual
representing the firm who lends the money.
Loan officers are often referred to as "lenders."
Lender
Guidelines
Many lenders use Fannie Mae and Freddie Mac
underwriting guide lines.
Lessee
The tenant in a lease contract; the person
who is entitled to possession of property
under a lease.
Lessor
The landlord in a lease contract; the property
owner who executes a lease.
Letter
of Intent
An expression of intent to invest, develop
or purchase without creating any firm legal
obligation to do so.
Levy
1. The legal seizure of property to satisfy
a judgment. 2. The imposition of a tax.
Liability
Debts or claims that creditors have against
assets. Liabilities include long-term and
short-term debt.
Liability
Insurance
Insurance coverage that offers protection
against claims alleging that a property owner's
negligence or inappropriate action resulted
in bodily injury or property damage to another
party. The coverage is usually included in
a homeowner’s insurance policy.
Lien
A legal claim against a property for payment
of a debt or obligation. The lien must be
paid off when the property is sold. A mortgage
or first trust deed is considered a lien.
Life
Cap
For an adjustable-rate mortgage (ARM), a limit
on the amount that the interest rate can increase
or decrease over the life of the mortgage.
Like
Kind Property
Any two properties that are considered to
be the same type, making an exchange between
them tax free. (e.g. two pieces of residential
real estate) see IRS Section 1031 exchange.
Limited
Partnership
A partnership consisting of one or more general
partners plus limited partners in which the
general partners manage and control the business
affairs of the partnership and where the limited
partners are essentially investors who have
funded the partnership and are silent and
take no part in its management and lawfully
have no liability for its debts in excess
of their invested capital.
Line
of Credit
An agreement by a commercial bank or other
financial institution to extend credit up
to a certain amount for a certain time to
a specified borrower. Also known as Home equity
Loan.
Liquid
Asset
A cash asset or an asset that is easily converted
into cash.
Linear
Foot
A measurement of one foot or 12 inches in
length as contrasted to a square foot or a
cubic foot.
Listing
Agreement
A contract authorizing a broker to sell, lease,
or exchange an owner's property.
Loan
A sum of borrowed money (principal) that is
generally repaid with interest.
Loan
Officer
The lender, loan representative or other who
solicits a loan. They are the representative
of the lending institution and represent the
borrower to the lending institution.
Loan
Origination
How a lender refers to the process of obtaining
new loans.
Loan
Origination Fee
A fee charged by the lender to the borrower
for the administrative costs of processing
and creating a mortgage loan which is usually
computed as a percentage of the loan amount
and is often expressed in points.
Loan
Servicing
After you obtain a loan, the company you make
the payments to services your loan. They send
statements, process payments, manage the escrow
account, ensure that insurance and property
taxes are made on the property, handle pay-offs
and assumptions, and other related services.
Loan-to-Value
(LTV)
The percentage relationship between the amount
of the loan and the appraised value or sales
price (whichever is lower).
Location,
Location, Location
A popular statement which refers to the "three
most important features in a real estate property"
indicating the great importance of location
in the value of real estate.
Lock-in
An agreement in which the lender guarantees
a specified interest rate for a certain period
of time at a certain cost.
Lock-in
Period
The time period during which the lender has
guaranteed an interest rate to a borrower.
Log
Cabin
An early-American-style house using unfinished
logs as the exterior walls.
Low-ball
Offer
An offer from a prospective property buyer
that is much lower than the listing price
which may indicate that the buyer believes
that the property will not receive many offers
or that the buyer is interested in the property
only if it can be purchased at a much reduced
price.
The
definitions of Real Estate Definitions found
on 10Realty.com are for general information
only. All information is subject to change
and should be independently verified. 10Realty.com
makes no representations or warranties of
any nature with regard to the information
found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this
information. (Real Estate Terms, Investment
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