Real Estate Glossary "L"
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
laches - Loss of legal rights because of failure to assert them on a timely basis. land - Includes the earth's surface, below to the center, above to infinity and all natural things attached. land contract - The seller accepts a down payment and finances the rest of the purchase price. Title to the property remains with the seller until the loan is repaid. Also called an installment sales contract and contract for deed. landlocked - Property that does not have access to a public road to enter or leave the land. This situation may create an easement by necessity. land trust - A trust in which real estate is the only asset. latent defects - Hidden defects in property. lease option - Gives the tenant the right to renew the lease if proper notice is given. lease purchase - An arrangement in which the tenant leases property for a period of time with the intention of purchasing it. lease with option to buy - Allows the tenant to purchase property within a specified time period, usually with pre-agreed terms. legal description - A precise method of describing a parcel of real estate. A description on documents used in the transfer of title to real estate that is acceptable to the courts. legal life estates - Life estate created by statute rather than by the actions of the parties. There are three common types: curtesy, dower and homestead. lessee - The tenant in a lease arrangement. lessor - The landlord/property owner in a lease arrangement. leverage - The use of borrowed money to purchase investments. liability coverage - Protection against claims by others for injuries caused by an owner's negligence. license - A personal privilege to enter another's land for a specific purpose. lien - A charge or claim against the property for a debt or obligation of the property owner. lienee - The party whose property is subject to a lien. lienor - The party holding the lien right. life estate - A noninheritable freehold estate based on the life (or lives) of named individuals. life insurance companies - A source of money for large industrial and commercial real estate projects. Deal with intermediaries rather than individual borrowers. life tenant - The party who owns a life estate in the property. like-kind property - As defined by the tax code (Section 1031), personal property that can be exchanged for other personal property or real estate that can be exchanged for other real estate. limited liability company - Incorporates the tax and liability advantages of corporations and limited partnerships. limited partnership - A type of partnership that includes at least one general partner and one or more limited partners. The limited partners cannot manage the business, and their liability is limited to the amount of their investment. liquidity - The speed at which an investment can be converted into cash. lis pendens - A notice in the public records of a lawsuit involving a particular property that may result in a claim against the property. listing contract - An agreement between an owner and a licensed broker in which the broker is employed to sell the real estate within a given time in return for a commission, to be paid by the owner. littoral rights - The rights of an owner with property bordering large bodies of water, such as the ocean. loan assumption - Occurs when someone other than the original borrower becomes primarily liable for the loan. loan commitment - A commitment by a lender to make a loan on a property for a stated amount within a certain period of time. Given to loan applicants when their credit has been approved by the lender. loan-to-value ratio - The relationship between the amount of a loan and the appraised value of a property. The ratio is expressed as a percentage of the appraised value. lot-and-block system - A method of describing real estate that references a parcel of land by lot and block numbers within a subdivision. Also called recorded plat. |
|