Real Estate & Investing Dictionary
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Labor Burden
Employer's charges for employee benefits, wages, taxes, insurance, etc.

Interweaving of roof shingles at intersections.

Land Contract
A type of creative financing in which a down payment is made and periodic payments are made at intervals to pay off the balance. The purchaser may use, occupy and enjoy the land but no deed is given by the seller until the total price is paid off.

Land Contract
An installment contract for the sale of land. The seller has legal title until paid in full. The buyer has equitable title during the contract term.

Land Cost
Total cost of purchasing a land parcel, including purchase rice, closing costs, commission, and finance charges.

Land Development
Process of developing raw land by planning and building homes, shopping centers, schools or churches. Initially, the development process includes construction of streets, sewers, utilities and other resources.

Land Index
A filing system of deeds and encumbrances of real property, typically located in a county’s courthouse or office of records.

Land Residual Technique
An appraisal method of estimating the value of land when given the net operating income and the value of improvements.

Land Sale Contract
A document that may be used to sell real property that transfers ownership rights but does not actually transfer title.

Land Sale-Leaseback
Sale of land and immediate leasing back by the original owner, whereupon the original owner can realize the capital value of the property and still retain its use.

Land Trust
A form of ownership whereby property is conveyed to a person or an institution called a trustee, to be held and administered on behalf of another person called the beneficiary.

Land Use Planning
Activity, generally conducted by a local government, which provides public and private land use recommendations consistent with community policies and is generally used to guide decisions on zoning.

Land Use Regulation
Government ordinances, codes and permit requirements intended to make the private use of land and natural resources conform to policy standards.

Land Value Map
Map delineating property values over a designated area.

Land, Tenements and Hereditaments
Phrase from early English law used to describe al types of real estate property, improvements to he land, and all rights accruing to the land.

A platform at the end, top or bottom of a flight of stairs.

Parcel of land that has no access to a public thoroughfare, except through adjacent property.

Person or business owning property that is rented out to tenants.

The owner of any real estate, such as a house, apartment building or land, that is leased or rented to another person, called the tenant.

Landlord's Lien
Landlord's right to receive the value of the tenant's property to pay for unpaid rents or for damages to the lease premises.

Last Transaction
The last transfer of property where no money was exchanged in the transfer, i.e., a quit-claim. Will not include refinances. See also: Transfer Date

Late Charge
Fee imposed by lender when an interest payment is not paid by the due date.

Late Payment
Payment received after the due date

Late Payments
Payments that are made past their due dates according to the loan documents.

An agreement by which an owner of real property (lessor) gives the right of possession to another (lessee), for a specified period of time (term) and for a specified consideration (rent).

Payment of rent by the lessee to the lessor, for the use of real property for a stated time period.

Lease Agreement
Binding agreement containing the terms of a renter's occupancy.

Lease Hold
The estate or interest held by the lessee in the property of another.

Lease Option
An alternative financing option that allows home buyers to lease a home with an option to buy. Each month's rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.

Lease Option
Agreement, specified in the lease, which provides the tenant the option to renew the lease for a given time period upon the expiration of the initial lease. Most lease options include the landlord's right to increase the rent upon renewal.

Lease Option - LO
An arrangement in which the owner of a property rents it to a tenant, but gives the tenant the right to purchase the property on agreed terms.

Lease With Option To Buy
An arrangement in which the owner of a property rents it to a tenant, but gives the tenant the right to purchase the property on agreed terms.

Lease With Option to Purchase
Lease, which contains the right of the lessee to buy the property at the end of the lease term.

Leased Fee
The landlord's ownership interest of a property that is under lease.

Agreement between the lessee and lessor specifying the lessee's rights to use the leased property for a given time at a specified rental payment.

Leasehold Estate
Possession and use of a property estate by virtue of a lease. There are four types of leasehold estates: estate for years, periodic tenancy, tenancy at will, and tenant at sufferance.

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.

Leasehold Improvements
Fixtures attached to real estate that are generally acquired or installed by the tenant.

Leasehold Mortgage
Mortgage collateralized by a tenant's interest, usually structural improvements, in a lease parcel of property.

Leasehold Value
The value of a tenant's interest in a lease, especially when the rent is below market and the lease has a long remaining term.

Legal Description
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.

Legal Description
A description of a tract of land in legally acceptable terms, intended to show the location and dimensions of a piece of property. Typically described as Sectional, or Metes & Bounds.

A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as "lenders."

Lender Approval
A lender's agreement to allow an assumption after its review of a borrower's creditworthiness and income. Lender approval can also apply to an initial loan.

Lender Liability
The legal doctrine that holds lenders legally responsible to pay damages for legal misdeeds committed against borrowers in the course of making loans.

Lender Name
The name of the institution which has financed the loan for the most recent sale.

One who contracts to hold occupancy rights in the real property of another.

Letter of Credit
A letter, usually from a financial institution, guaranteeing a debt incurred by a third party.

Letter of Intent
A letter stating a buyer's intent to make an offer to acquire a certain property. It is not a binding contract.

Obtaining a higher return on borrowed money than the cost of borrowing it. A situation where the smallest amount of cash is invested to obtain the best yield, percentage wise.

A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.

Debts and financial obligations, incurred but unpaid.

The obligation to pay a 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. It is usually part of a homeowner’s insurance policy.

Liability Insurance
Policy that protects against claims against them of property damage, personal injury, negligence, etc.

Legal claim placed on the property of a person as security for money owed

A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.

The right to force the sale of property to pay a debt.

Lien Theory States
States that allow the lender to collect the debt owed by selling the property in the event of default.

A person or institution that controls a lien.

Life Cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the enterest rate can increase or decrease over the life of the mortgage.

Life Estate
The conveyance of title to property of the duration of the life of the grantee.

Life Tenant
The holder of a life estate.

Limited Equity Housing
An arrangement designed to encourage low-and moderate-income families to purchase housing, in which the housing is offered at an extremely favorable price with a low down payment. The catch is that when the owner sells, she gets none of the profit if the market value of the unit has gone up. Any profit returns to the organization that built the home, which then resells the unit at an affordable price.

Limited Partnership
A partnership composed of a limited partner(s) and a general partner(s). The limited partner(s) contributes capital but is not liable for any debts of the partnership, nor can they manage or control the partnership.

Line of Credit - LOC
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.

The time and distance between a designed use of property and the intended users.

Liquid Asset
A cash asset or an asset that is easily converted into cash.

Liquidated Damages
Damages, usually monetary, spelled out in a contract which would be available in the event of a default, to the party not in default.

Liquidating Plan
A plan by which a borrower repays missed payments to the lender over time.

Liquidation Appraisal
An estimate of the value of property when it is sold quickly in a forced sale. Usually, this figure is lower than fair market value for a regularly conducted sale.

Lis Pendens
A recorded notice that tells the world that a lawsuit is in progress, the outcome of which could affect the title to a particular piece of land.

An agreement whereby owner of property gives a real estate agent the right to handle the sale or lease of property and to receive a commission for this service.

Property placed on the market by a real estate listing agent.

Listing Agent
The sales agent who had obtained the right from a seller to handle the marketing of a piece of property.

Listing Agreement
The agreement by which a seller hires a real estate broker to sell a house, usually for a commission.

Listing Broker
The real estate broker who is responsible for the listing of a property and who is to represent the interests of the seller.

Living Unit
One single dwelling, condo, apartment, house, etc.

A sum of borrowed money (principal) that is generally repaid with interest.

Loan Balance
The amount a borrower owes on a loan.

Loan Default
See Default.

Loan Modification
A procedure in which a loan's terms, such as the interest rate, monthly payment or term, are altered.

Loan Officer
A person paid commissions to find and sign up borrowers for loans.

Loan Officer
Also referred to by a variety of other terms, such as lender, loan representative, loan "rep," account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.

Loan Origination
How a lender refers to the process of obtaining new loans.

Loan Paper
See "loan" or "Paper"

Loan Pool
A group of mortgages in which investors own shares.

Loan Processor
The person who gathers and prepares the paperwork used by a lender to decide whether or not a loan should be made.

Loan Rates
The interest rate charged for a loan.

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 Term
The amount of time that is set for the repayment of the mortgage or loan. Conforming loans are usually 15 or 30 years.

Loan to Value - LTV
The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).

Local housing corporation
a not-for-profit corporation organized pursuant to the laws of the state of Missouri for the purpose of promoting housing development and conservation within a specified area of a municipality or an unincorporated area

An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.

Lock-In Period
The time period during which the lender has guaranteed an interest rate to a borrower.

Unpartitioned living space (one large room) or a space built just below the roof, above a larger room. Upper floor of a factory or warehouse.

Long Term Assets
Also called fixed assets, they are assets such as office equipment that can be depreciated.

Plot of ground, which may or may not be developed.

A piece of land surveyed and platted within a Block.

Lot Book Report
A report made by a title company that identifies and encumbrances recorded against a particular property. A lot book report does not identify liens recorded in the name of the owner that may affect property.
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