Your Online Legal Resource Center for Property Management

LACHES - Time delays which extend a legal action or claim beyond the limits allowed under the statute of limitations in order to bring about the loss of another's right to make a claim or pursue legal action

LALLY COLUMNS - Steel support columns filled with cement.

LAMINATE - Layering materials as a means of construction or for its own protection, such as plywood glued together in layers or plastic covering a surface.

LAND BANK - Property purchased to preserve it for future development, by a government body.

LAND CONTRACT - An installment agreement involving the sale of land, with or without improvements. The seller (vendor) retains title until fully paid, while the buyer (vendee) is said to have equitable title during the term of the agreement.

LAND GRANT - Land given by the federal government to a local government, business or person.

LAND LEASEBACK - Land leased back by a seller from a buyer who is addition subordinates his interest so that 100% financing may be obtained for both the land and the development of it.

LANDLOCKED PARCEL - A piece of land that has no legal means of being entered or exited; frequently created by leftover land condemned to build a highway.

LANDOWNER'S ROYALTY - The owner's percentage of interest in oil and gas removed from his property on a lease agreement.

LAND RESIDUAL TECHNIQUE - An appraisal method used to determine the value of land without its improvements.

LANDSCAPE - A home's surroundings can range from a shrub-studded emerald lawn to a native-plant. It is one major component of curb appeal.

LANDSCAPE ARCHITECT - A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.

LANDSCAPE DESIGNER - A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.

LANDSCAPE CONTRACTOR - A professional who carries out the plans of a landscape architect or a landscape designer.

LAND-SERVICE ROAD - A road usually running parallel to a limited access highway, which serves the property adjacent to it and connects parcels otherwise cutoff by the highway.

LAND TRUST CERTIFICATE - A document which states that land is being held by a trustee for the benefit of an owner.

LAND USE PLANNING - Local development of a plan for the future use of land within its jurisdiction, established by zoning laws.

LAND VALUE MAP - A map showing the value of property in a given area according to square footage or acres.

LAP SLIDING - Long boards, usually cedar, which overlap to create exterior siding for a building.

LATE CHARGE - A charge made for payments that are overdue after a grace period. Also, a fee a lender imposes on a borrower when the borrower does not make a payment on time.

LATE PAYMENT - A payment a lender receives after the due date has passed.

LATENT DEFECT - An invisible problem in a piece of property such as bad wiring, termite damage or lead paint

LATENT DEFECT BOND - A bond required by F H A assuring a borrower that any defects resulting from poor construction which may be undetected until after closing will be taken care of by the builder or prior owner.

LATERAL - A project receiving support from that which it adjoins.

LATERAL SUPPORT - A landowner's right to the natural support of adjoining land which may not be hampered by the adjoining owner removing or weakening in any way that support.

LEAD - A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.

LEAD LENDER - A lender who services and processes a loan, but who may find a larger lender to actually finance the loan.

LEASE - A binding agreement that contains the terms and conditions of a renter's occupancy.

LEASEBACK - A prearranged lease agreement between a buyer and seller under which the property purchased is leased back to the seller.

LEASEHOLD - An interest in property established under a lease agreement for a fixed period of time; the lease itself is considered personal property.

LEASEHOLD ESTATE - An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.

LEASEHOLD INTEREST - The difference between the amount of remaining interest a lessee might have in property according to the total rent owed under the lease, and the amount the lessee would have to pay to rent like property.

LEASEHOLD VALUE - The worth of a leasehold interest under a long term lease when the amount paid is less than what a lessee would have to pay to lease a similar property.

LEASE OPTION - A lease that contains the right to purchase the property for a specific price within a certain time frame

LEASE WITH OPTION TO BUY - A lease under which a lessee has the future right to purchase the leased property under specified conditions.

LEGAL BLEMISH - Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.

LEGAL DESCRIPTION - A specific way of identifying and locating a piece of real estate that is acceptable to a court.

LEGAL OWNER - The person or persons whose names are specified on the last deed executed granting them title even though they may have passed possession on to another who has right of possession under a land contract. A land contract owner is said to have equitable title while the land contract holder has legal title.

LEGAL RATE OF INTEREST - A rate of interest whose limit is established by law, usually state statute.

LENDER - A bank, savings institution or mortgage company that offers home loans.

LESSEE - The (tenant) party who has right of possession under a lease.

LESSEE'S INTEREST - The appraised value of a lessee's interest in order to determine its worth for assignment or sale.

LESSOR - The owner who grants the tenant the right to possess or occupy his or her property in return for rent under a lease agreement.

LETTER OF ATTORNMENT - A written statement from an owner to a tenant informing the tenant that the property has been sold and future rent should be paid to the new owner.

LETTER OF INTENT - A formal statement declaring a buyer's intention to purchase the property for a certain price on a certain date.

LETTING - Leasing.

LEVEL PAYMENT MORTGAGE - See Interest included note.

LEVERAGE - The use of a small amount of cash - a 5 percent or 10 percent down payment - to buy a piece of property.

LIABILITIES - A borrower's debts and financial obligations.

LIABILITY INSURANCE - A policy that protects owners against any claims of negligence, personal injury or property damage.

LICENSE - Direct or indirect permission granting another the right to perform an act on behalf of a third party or oneself

LICENSE EXAMINATION - The test which determines whether a person is knowledgeable enough about a particular subject (i.e. real estate, insurance), to be granted the right to perform services on behalf of another.

LIEN - A claim lain by one person or company on the property of another as security for money owed.

LIEN WAIVER - A subcontractor's waiver of his right to place a mechanic's lien against property for materials and labor performed, so that the general contractor may draw against a construction loan.

LIFE CAP - A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an ARM that begins at 5 percent and has a lifetime cap of six percentage points cannot rise above 11 percent, even if rates on fixed rate mortgage soar to 20 percent.

LIFE CYCLE COST ANALYSIS - An analysis of a building project's expected operating, maintenance and replacement costs calculated by an architect.

LIFE ESTATE - An interest in property, such as to occupy or possess, granted for the life of a specific person, upon whose death the right reverts to the grantor or his heirs.

LIFE INTEREST - See life estate.

LIGHT AND AIR EASEMENT - An easement obtained from an adjoining land owner to protect against the obstruction of light and air which would result if a building or structure was constructed on the property granting the easement.

LIGHT INDUSTRY - Nonpolluting manufacturers or businesses.

LIGHT WELL - The outside pit or well around a basement window which provides light and air to it.

LIKE IN KIND PROPERTY - Investment property for investment property, as referred to in an exchange of real estate.

LIMITATION OF ACTION - The legally limited time period on which a claim or court action may take place to settle a dispute.

LIMITED ACCESS HIGHWAY - A highway that restricts access to intervals of one mile or greater.

LIMITED COMMON ELEMENTS - Areas in a condominium subdivision that are owned as undivided interest but which are physically restricted in use, such a parking space belonging to a particular unit or storage area.

LIMITED PARTNERSHIP - Real estate syndicates and other investment groups use this type of ownership. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.

LINTEL - A horizontal piece over a door or window that carries the weight of the structure above it.

LINE OF CREDIT - The amount of money a businessman or investor might obtain from a lender without a credit check, to use for business purposes.

LIQUID ASSETS - Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.

LIQUIDATED DAMAGES - When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.

LIS PENDENS - A recorded notice that legal action is pending against the subject property and anyone who purchases it will be bound by the decision arrived at.

LIST-BACK - Real estate located by a licensed agent for a developer who purchases it without paying a commission on the condition that the property when subdivided into lots and improved will be listed with the agent, who will then derive a commission from its sale.

LISTING - A piece of property placed on the market by a listing agent.

LISTING AGENT - The broker's representative who obtains a listing agreement with the seller, as opposed to the selling agent who may represent another brokerage.

LISTING INVENTORIES - The known number of houses for sale within a given market.

LITTORAL - Involving the shore of lakes and oceans.

LIVE LOAD - The weight of everything in a building, including people and furniture, which it is built to support, versus the dead weight (fixed) of the building itself.

LIVING TRUST - A trust established by a living person from which he benefits during his lifetime; a testamentary trust takes effect after death.

LIVE-IN PARTNERSHIP - An arrangement in which two unrelated people purchase a home.

LIVE-WORK SPACE - An officially designated dwelling in which the occupant conducts a home-based business or enterprise.

LOAD-BEARING - The support capacity of a lateral or vertical column or beam

LOAD-BEARING WALL - A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.

LOAN - The act of lending a specified sum of money based on a promise to repay said money, including interest.

LOAN APPLICATION - The first step toward in submitting a home loan requires the borrower to itemize basic financial information.

LOAN APPLICATION FEE - A fee charged by lenders to for making a loan application.

LOAN COMMITMENT - A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.

LOAN CORRESPONDENT - An intermediary who processes and services a loan for another institution who actually lends the funds for a mortgage.

LOAN OFFICER - An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.

LOAN ORIGINATION FEE - Most lenders charge borrowers an origination fee - or points - for processing a loan. A point is one percent of the total loan amount.

LOAN PACKAGE - All of the documents and information necessary for a lender to make a decision as to whether or not to make a loan, such as credit report, job verification, appraisal, etc.

LOAN POLICY - A policy issued for the benefit of a lender and paid for by a borrower, to insure against loss which might occur as a result of defective title or loss of priority.

LOAN PROCESSING FEE - A fee charged by some lenders for gathering information to enable the lender to process the loan.

LOAN TERM - The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms .

LOAN TO VALUE RATIO - A technical measure used by lenders to assess the relationship of the loan amount to the value of the property

LOAN RELIEF - In an exchange of real property it would be referred to as boot or the extra amount receive as a result of a lower mortgage balance.

LOCATION - In appraising value, a property geographically well-situated for its intended use.

LOCK-IN - When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

LOFT - A living space not partitioned into rooms or a small space built above a larger room.

LOG CABIN - Homes constructed of roughhewn timbers and a standard housing form in the early European settlement of the US

LONG TERM CAPITAL GAIN - Profit on a property that has been held for a specified period of time prior to resale, usually 1 year or more. The IRS treats this gain at a special rate as opposed to ordinary income.

LONG TERM FINANCING - A mortgage which extends over a period of ten years or more rather than short-term interim or construction financing.

LONG TERM LEASE - A lease with a term of ten years or more. Some areas of the country consider long term to be five years or more.

LOOSE MONEY - An economic term referring to the availability of money; borrowers qualify for more money under fewer restrictions when mortgage money is loose.

LOSS FACTOR - In commercially leased floor space, the difference between square footage rented and that which can actually be used; loss may result from an area taken up by support columns.

LOSS OF ACCESS - Loss of the

LOSS PAYABLE CLAUSE - In an insurance policy, the clause which names the persons or parties to whom funds will be paid in the event of loss, according to their priority of interest.

LOT, BLOCK, AND SUBDIVISION - A legal description of property in reference to its situation in a recorded subdivision.

LOW-BALL OFFER - An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.

LOW DENSITY - A low concentration of housing units in a specific area.

LOW DOCUMENTATION LOAN - Mortgages that require only minimal verification of income and assets.

LOW DOWN PAYMENT LOAN - A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house