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Real Estate Terms / Real Estate Dictionary


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-L-

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.

Live-Work Space
A live/work space is defined as a property that is specifically designed for the combined dual use of residential and commercial/employment such as service providing, selling of goods or making something. This type of residence is ideal for an artist studio, someone engaged in personal or professional services, someone who services or repairs products or the individual who makes or assembles products on a small scale. The official definition of this zoning varies by state.

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.

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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 Terms, Banking Terms explained, definitions, legal definitions, legal terms and definitions)

 

 



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