land
|
The surface of the earth; any part of the surface of the
earth. |
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 |
lease
|
A written agreement between the property owner and a tenant
that stipulates the conditions under which the tenant may possess
the real estate for a specified period of time and rent. |
lease option
|
A lease that contains the right to purchase the property for
a specific price within a certain time frame. |
leasehold estate
|
A way of holding title to a property wherein the mortgagor
does not actually own the property but rather has a recorded
long-term lease on it. |
legal description
|
A property description, recognized by law, that is sufficient
to locate and identify the property without oral testimony. |
lender
|
A bank, savings institution or mortgage company that offers
home loans. |
liabilities
|
A person's financial obligations. Liabilities include
long-term and short-term debt, as well as any other amounts that
are owed to others. |
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. |
LIBOR
|
The London Interbank Offered Rate Index (LIBOR) is an average
of the interest rates that major international banks charge each
other to borrow U.S. dollars in the London money market. Like the
U.S. treasury the CD indexes, LIBOR tends to move and adjust
quite rapidly to changes in interest rates. |
life cap
|
For an adjustable-rate mortgage (ARM), a limit on the amount
that payments can increase or decrease over the life of the
mortgage. See cap. |
life estate
|
An estate in land where the owner's rights to the property
cease at their death. |
like-kind property
|
A term used in a 1031 exchange of property held for
productive use in a trade or business or for investment. Unless
cash is received, the tax consequences of the exchange are
postponed pursuant to Section 1031 of the Internal Revenue
Code. |
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. See home equity line of
credit. |
liquid asset
|
A cash asset or an asset that is easily converted into
cash. |
lis pendens
|
A legal notice intending to bind third parties of litigation
claiming an interest in real estate. |
listing agreement
|
An agreement between the owner of a property and a real
estate broker giving the broker authorization to attempt to sell
or lease the property at a certain price and terms in return for
a commission, set fee or other form of compensation. |
littoral rights
|
The right of an owner of land with a shoreline contiguous to
a sea or lake to use and enjoy the shore without a change in its
position created by artificial interference; as distinguished
from riparian rights and water rights. |
loan
|
A sum of borrowed money (principal) that is generally repaid
with interest. |
loan officer
|
Also called lender, loan representative, loan "rep," account
executive, and others. The loan officer is the representative of
the lending institution. |
loan origination
|
The process by which a mortgage lender brings into existence
a mortgage secured by real property. |
loan servicing
|
After you obtain a loan, the company you make the payments to
is "servicing" your loan. They process payments, send statements,
manage the escrow/impound account, provide collection efforts on
delinquent loans, ensure that insurance and property taxes are
made on the property, handle pay-offs and assumptions, and
provide a variety of other services. |
loan-to-value (LTV)
|
The relationship between the principal balance of the
mortgage and the appraised value (or sales price if it is lower)
of the property. For example, a $100,000 home with an $80,000
mortgage has a LTV percentage of 80 percent. |
lock-in
|
A written agreement in which the lender guarantees a
specified interest rate if a mortgage goes to closing within a
set period of time. The lock-in also usually specifies the number
of points to be paid at closing. |
lot and block system
|
The Lot and Block Survey System is a method used in the
United States to locate and identify land, particularly for lots
in densely populated metropolitan areas and suburban areas. It is
sometimes referred to as the Recorded Plat Survey System or the
Recorded Map Survey System. |
low-rise
|
A building with fewer than four stories above ground
level. |
