LAISSEZ-FAIRE
- Leave alone, let proceed, French expression made used to describe a
theory that free trade promotes a better business climate that
government controls.
LALLY COLUMNS -
Load-bearing steel columns, which are filled with concrete (lally).
LAND
- A general term which includes the ground and those things of a
permanent nature such as trees, crops, oil and minerals in the ground,
unless specifically excepted.
LAND CONTRACT
- A contract used in a real property sale where the seller keeps the
title to the property until the sales price has been paid.
LANDLOCKED PARCEL
- A parcel of land surrounded entirely by privately owned land, with no
access to a public right of way (road). Condemnation for a limited
access highway is a major cause of such parcels.
LANDSCAPING - Act of
modifying a landscape, or features used in such modification,
such as trees, lawns, grade changes, etc.
LAND USE MAP - A map
of a given area, showing the different land uses in the area.
LATENT DEFECT - A
hidden or concealed defect. One which could not be discovered by
inspection, using reasonable care.
LEACHING
- Removal of liquid waste material from sewage by filtration (gravel,
sand, etc.) or in which filtration materials are placed to remove the
liquid waste from sewage.
LEASEHOLD - An
estate in realty held under a lease; an estate for a fixed term.
Considered in many states to be personal property.
LEASE WITH OPTION TO PURCHASE
- A lease under which the lessee has the right but not the obligation
to purchase the property.
LEGAL DESCRIPTION -
A method of geographically identifying a parcel of land, which is
acceptable in a court of law.
LEGAL RATE OF INTEREST
- A rate of interest established by law, rather than by
agreement.
LEGAL TITLE
- Usually title without ownership rights, such as the title
placed in a trustee under a deed of trust, or the title in a vendor
under a land contract.
LENDER - A general
term encompassing all mortgages, and beneficiaries under deeds of trust.
LETTER OF ATONEMENT
- A letter from a grantor to a tenant, stating that the property has
been sold, and directing rent to be paid to the grantee (new owner).
LETTER OF INTENT
- A formal method of stating that a prospective developer, buyer, or
lessee, is interested in property. Not an offer and creates no
obligation. A builder may use letters of intent to justify a loan to
construct a property.
LEVERAGE - Use of
debt financing to purchase a property.
LEVY - A collection,
seizure, assessment, etc. such as a tax levy.
LIABILITY -
A general term used to describe all types of debts and
obligations.
LIEN - A encumbrance
(legal hold) against the property as security for the payment of debt,
mortgages, judgments or taxes.
LIFE - The length of
time an improvement will last, either in relation to its physical
utility or as an accounting procedure.
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.
LISTING
- An agreement between an owner of real property and a real estate
agent, whereby the agent agrees to secure a buyer or tenant for
specific property at a certain price and terms in return for a fee or
commission.
LISTING AGENT - A
real estate agent obtaining a listing. The opposite of the selling
agent.
LOAN - A lending of
a principal sum of money to one who promises to repay said sum, plus
interest.
LOAN PACKAGE
- The file of all items necessary for the lender to decide to give or
not give a loan. Items would include the information of the prospective
borrower (loan application, credit report, financial statement,
employment letters, etc.) and information on the property (appraisal,
survey, etc.). There may be a charge for "packaging" the loan.
LOAN POLICY
- A title insurance policy insuring a mortgagee, or beneficiary under a
deed of trust, against loss caused by invalid title in the borrower, or
loss of priority of the mortgage or deed of trust.
LOAN TO VALUE RATION
- Ration reflecting the mortgage loan amount to the appraised value or
purchase price of a home.
LOCK-IN
- The prohibition of prepayment of a loan secured by mortgage
or
deed of trust, so that the borrower is "locked in" to the loan for a
specific time period.
LOT - Generally, any
portion or parcel of real property. Usually refers to a portion of a
subdivision.