REAL ESTATE DICTIONARY - L
Land
In a legal sense, the solid part of the surface of the
earth, as distinguished from water; any ground, soil
or earth whatsoever regarded as the subject of ownership
and everything annexed to it, whether by nature, e.g.,
trees and everything in or on it, such as minerals and
running water, or annexed to it by man; e.g., buildings,
fences, etc. In an economic sense, land consists of
all those elements in the wealth of a nation which is
supposed to be furnished by nature as distinguished
from those improvements which owe their value to the
labor and organizing power of man.
Land Contract
Installment plan for buying a house. It is used as an
alternative to obtaining a loan from a traditional,
source such as a mortgage banker or savings and loan.
Late Charge
A penalty for failure to pay an installment on time.
Latent Defect
Hidden structural defect.
Lease with Option to Purchase
A lease under which the lessee has the right to purchase
the property. The option may run for the length of the
lease or only for a portion of the lease period.
Legal Description
An expanded and unique description of a property that
is used on legal documents, such as deeds and deeds
of trust. Recorded documents generally require a legal
description.
Lender
A general term encompassing all mortgages, and beneficiaries
under deeds of trust.
Lender's Instructions
A document that lenders prepare for the closing agent
that outlines the requirements for loan closing.
Lessee
One who possesses the right to use or occupy a property
under lease agreement.
Lessor
One who holds title to and conveys the right to use
and occupy a property under lease agreement.
Letter of Intent
A formal method of stating that a prospective developer,
buyer or lessee is interested in property.
Lien
An encumbrance against property for the payment of debt;
a lien may be a mechanic's lien, mortgage, unpaid taxes
or judgment.
Life Estate
An estate in real property for the life of a living
person. The estate then reverts back to the grantor
or to a third party.
Limited Partnership
A partnership consisting of one or more general partners
who conduct the business and are responsible for losses,
and one or more special partners, who contributes capital
and are liable only to the amount contributed.
Lis Pen dens
A public notice that litigation is pending on a property.
Listing
A record of property for sale by a broker who has been
authorized by the owner to sell. Also used to denote
the property so listed.
Listing Agreement
Agreement between a property owner and a real estate
broker, authorizing the broker to find a buyer for the
property. If the sale is consummated, the listing broker
will be paid a fee.
Loan Discount/Premium Fees
Fees that borrowers pay (sometimes seller will pay for
borrower) that adjust to the yield requirement of the
investor. Loan discount denotes an investor yield requirement
higher than the note rate. Loan premium denotes an investor
yield requirement lower than the note rate.
Loan Lock
Guarantee from a lender that a borrower will receive
the interest rate in effect at the time of loan application.
Loan Officer
A person that helps borrowers through the loan selection,
processing, and closing of a mortgage loan. Loan officers
can be paid a commission or salary for their services
and can work for mortgage brokers, mortgage bankers,
or depository institutions.
Loan Origination Fees
The cost to obtain a loan that is paid to the originating
lender or broker.
Loan Package
The information regarding a borrower and property necessary
which is the basis for a lender's credit decision to
extend or deny credit.
Loan Ratio
The amount of a loan to the value or selling price of
real property.
Loan Servicing
The function of collecting loan payments, managing the
property tax and insurance escrows, foreclosing on defaulted
loans and remitting payments to the investor/beneficiary.
Loan-to-Value Ratio
The ratio of the mortgage loan amount to the property's
appraised value or selling price, whichever is less.
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