[
Dictionary of Terms ]
 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
L
LATCHES
undue delay or negligence in asserting one's legal rights, possibly
leading to estoppel of negligent party suit
LAND
the surface of the earth; any part of the surface of the earth
LAND
BANKING the activity of purchasing land that is not presently
needed for use.
LAND/BUILDING
RATIO a ratio of relative values of the land to improvements.
Contrast with improvement ratio.
LAND
CONTRACT a real estate installment selling arrangement whereby
the buyer may use, occupy, and enjoy land, but no deed is given
by the seller (so no title Passes) until all or a specified part
of the sale price has been paid. Same as contract for deed and
installment land contract
LAND
ECONOMICS the branch of economics that concentrates upon the
economic attributes of land and the economics of agriculture.
LAND
LEASE only the ground is covered by the lease.
LANDLOCKED
the condition of a lot that has no access to a public thoroughfare
except through an adjacent lot. Compare with easement, right-of-way.
LANDLORD
one who rents property to another; a lessor. A property owner
who surrenders the right to use property for a specific time
in exchange for the receipt of rent.
LANDMARK
a fixed object serving as a boundary mark for a tract of land.
Same as monument
LAND
RESIDUAL TECHNIQUE in appraisal, a method of estimating the value
of land when given the net operating income (NOI) and value of
improvements. Used for feasibility analysis and highest and best
use.
LAND
SALE-LEASEBACK the sale of land and simultaneous leasing of it
by the seller, who becomes the tenant.
LANDSCAPE
ARCHITECT a professional who designs building sites, subdivisions,
and other projects which require work on drainage, grading, vegetation,
installation of utilities and site improvements.
LAND,
TENEMENTS, AND HEREDITAMENTS a phrase used in early English law
to express all sorts of real estate.
LAND
USE INTENSITY a measure of the extent to which a land parcel
is developed in conformity with zoning ordinances.
LAND
USE PLANNING an activity, generally conducted by a local government,
that provides public and private land use recommendations consistent
with community policies. Generally used to guide decisions on
zoning.
LAND
USE REGULATION government ordinances, codes, and permit requirements
intended to make the private use of land and natural resources
conform to policy standards.
LAND
USE SUCCESSION a change in the predominant use of a neighborhood
or area over time.
LATENT
DEFECTS flaws that are hidden but are apt to surface later.
LATE
PAYMENTS a fee added to a bill after the expiration of a specific
grace period. Such payments are intended to encourage timely
payment of the bill.
LEASE
a contract in which, for a payment called rent, the one entitled
to the possession of real property (lessor) transfers those rights
to another (lessee) for a specified period of time.
LEASED
FEE the landlord's ownership interest of a property that is under
lease.
LEASEHOLD
the interest or estate on which a lessee (tenant) of real estate
has a lease.
LEASEHOLD
IMPROVEMENTS fixtures attached to real estate that are generally
acquired or installed by the tenant. Upon expiration of the lease,
the tenant can generally remove them, provided such action does
not damage the property nor conflict with the lease.
LEASEHOLD
MORTGAGE a lien on the tenant's interest in real estate.
LEASEROLD
VALUE the value of a tenant's interest in a lease, especially
when the rent is below market and the lease has a long remaining
term.
LEASE
WITH OPTION TO PURCHASE a lease that gives the lessee (tenant)
the right to purchase the property at an agreed-upon price under
certain conditions.
LEGAL
AGE the official standard of maturity upon which one is held
legally responsible for one's acts. Contracts for the sale or
lease of real estate by a minor are voidable by the minor.
LEGAL
DESCRIPTION legally acceptable identification of real estate
by one of the following: * the government rectangular survey
* metes and bounds * recorded plat (lot and block number)
LEGAL
NAME the name one has for official purposes.
LEGAL
NOTICE notification of others using the method required by law.
LEGAL
RESIDENCE generally one's permanent home.
LEGAL
TITLE a collection of rights of ownership that are defined or
recognized by law or that could be successfully defended in a
court of law.
LEGATEE
one who receives property by will.
LESSEE
a person to whom property is rented under a lease. A tenant.
Compare with lessor. .
LESSOR
one who rents property to another under a lease. A landlord.
Compare with lessee.
LESS
THAN FREEHOLD ESTATE an estate in land that has a predetermined
time span; most commonly a leasehold.
LET
to rent a property to a tenant.
LETTER
OF COMMITMENT official notification to a borrower of the lender's
intent to grant a loan. Generally specifies the terms of the
loan and sets a date for the closing.
LETTER
OF CREDIT an arrangement, with specified conditions, whereby
a bank agrees to substitute its credit for a customer's.
LETTER
OF INTENT the expression of a desire to enter into a contract
without actually doing so.
LEVEL-PAYMENT
MORTGAGE requires the same payment each month (or other period)
for full amortization.
LEVERAGE
use of borrowed funds to increase purchasing power and, ideally,
to increase the profitability of an investment.
LEVY
to legally impose or collect that which is due.
LIABILITY
1. a debt or financial obligation. Contrast with asset. 2. a
potential loss.
LIABILITY
INSURANCE protection for a property owner from claims arising
from injuries or damage to other people or property.
LIABLE
responsible or obligated. Contrast with exculpatory clause and
nonrecourse
LIBOR
London Interbank Offered Rate. The rate that international banks
dealing in Eurodollars charge each other for large loans. Some
domestic banks use this rate as an index for adjustable rate
mortgages.
LICENSE
1. permission. 2. a right granted by a state to an individual
to operate as a real estate broker or salesperson.
LICENSED
APPRAISER generally an appraiser who meets certain state requirements,
but lacks the experience or expertise of a certified appraiser.
LICENSEE
one who holds a real estate license; a licensed salesperson or
broker.
LICENSE
LAWS laws that govern the activities of real estate salespersons.
LICENSING
EXAMINATION a written test given to a prospective real estate
broker or salesperson to determine ability to represent the public
in a real estate transaction. Most states offer examinations
on at least 5 dates each year.
LIEN
a charge against property making it security for the payment
of a debt, judgment, mortgage, or taxes; it is a type of encumbrance.
A specific lien is against certain property only. A general lien
is against all of the property owned by the debtor.
LIENHOLDER
one who holds, or benefits from, a lien.
LIEN,
JUNIOR a lien that will be paid after earlier liens have been
paid.
LIEN-THEORY
STATES states whose laws give a lien on property to secure debt.
Contrasted with title theory states in which the lender becomes
the title owner. In either case the borrower has the right to
use and enjoy the property in the absence of default; in the
event of default, lenders may foreclose.
LIFE
ESTATE a freehold interest (in real property) that expires upon
the death of the owner or some other specified person (pur autre
vie).
LIFE
OF LOAN CAP a contractual limitation on the maximum interest
rate that can be applied to an adjustable rate mortgage during
the term of the loan.
LIFE
TENANT one who is allowed to use property for life or the lifetime
of another designated person..
LIKE-KIND
PROPERTY property having the same nature.
LIMITED
LIABILITY the restriction of one's potential losses to the amount
invested. The absence of personal liability
LIMITED
PARTNERSHIP one in which there is at least one partner who is
passive and limits liability to the amount invested, and at least
one partner whose liability extends beyond monetary investment.
LINCOLN
GRADUATE CENTER an organization that offers real estate education,
especially appraisal courses.
LINEAL
FOOT a measure of one foot, in a straight line, along the ground.
LINE
OF CREDIT an agreement whereby a financial institution promises
to lend up to a certain amount without the need to file another
application.
LIQUIDATE
1. to dissolve a business. . 2. to retire debts.
LIQUIDATED
DAMAGES an amount agreed upon in a contract that one party will
pay the other in the event of a breach of the contract
LIQUIDITY
ease of converting assets to cash.
LIS
PENDENS Latin: "suit pending." Recorded notice of the filing
of a suit, the outcome of which may affect title to a certain
land.
LIST
to obtain a listing.
LISTING
1. a written engagement contract between a principal and an agent,
authorizing the agent to perform services for the principal involving
the latterÕs property. 2. a record of property for sale
by a broker who has been authorized by the owner to sell. 3.
the property so listed.
LISTING
BROKER (AGENT) the licensed real estate broker (agent) who secures
a listing of the property. Contrast with selling broker (agent).
LITIGATION
the act of carrying on a lawsuit.
LITTORAL
part of the shore zone of a large body of water. Compare with
riparian rights.
LOAN
APPLICATION document required by a lender prior to issuing a
loan commitment. The application generally includes the following
information: I - name of the borrower 2. amount and terms of
the loan 3. description of the subject property to be mortgaged
4. borrower's financial and employment data
LOAN
APPLICATION FEE a charge required by a loan originator to be
paid by the borrower to cover the credit report, property appraisal
and other incidental expenses associated with underwriting the
loan. The fee is generally not refundable.
LOAN
COMMITMENT an agreement to lend money, generally of a specified
amount, at specified terms at some time in the future.
LOAN
CONSTANT same as mortgage constant
LOAN
COVERAGE RATIO same as debt coverage ratio.
LOAN
PACKAGE the collection of documents associated with a specific
loan application.
LOAN-TO-VALUE
RATIO (LTV) the portion of the amount borrowed compared to the
cost or value of the property purchased.
LOCATION,
LOCATION, LOCATION" the "three most important things about real
estate"; a popular statement that emphasizes the importance of
location with respect to the value of urban real estate.
LOCKED-IN
INTEREST RATE the rate promised by a lender at the time of loan
application. The promise is a legal commitment of the lender,
though there may be qualifications or contingencies that allow
the lender to charge a higher rate. On home loans, the lock-in
is customarily provided for 1% of the amount borrowed, though
often it is free-e of charge. On income property loans, a lock-in
generally requires a commitment fee from the loan applicant.
LOG
CABIN an early-American-style house of unfinished logs.
LONG-TERM
CAPITAL GAIN for income tax purposes, the gain on a capital asset
held long enough to qualify for special tax considerations. Note:
The highest rate for individuals in 1991 and thereafter for long-term
capital gains is 28%.
LONG-TERM
FINANCING same as permanent mortgage.
LONG-TERM
LEASE generally, a commercial lease of 5 years or longer, or
a residential lease longer than I year.
LOT
AND BLOCK a method of locating a parcel of land.
LOT
LINE a line bounding a lot as described in a property survey.
LOW-BALL
OFFER an offer from a prospective property buyer that is much
lower than the listing price. Such an offer may indicate the
buyerÕs belief that the property will not attract many
good offers and the asking price is unrealistic
LOW-INCOME
HOUSING (QUALIFIED) housing that is eligible for special tax
credits of up to 9% of their cost (4% in certain situations)
under the 1986 tax act - Strict rules must be followed concerning
tenant qualification, certification, and project financing.
LTV
loan-to-value ratio.
L/V
loan-to-value ratio.
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