Definitions Of Key Real Estate Terms L
This article provides the definitions of key estate terms beginning with the letter L.
Laches
is an equitable doctrine used by courts to bar a legal claim or prevent the assertion of a right because of undue delay or failure to assert the claim or right.
Land
is the earth’s surface, extending downward t the center of the earth and upward infinitely into space including things permanently by nature such as trees and water.
Latent Defect
is a hidden structural defect that could be discovered by ordinary inspection and threaten the property’s soundless or the safety of the occupants.
Lease
is a written or oral contract between the lessor (landlord) and the lessee (tenant) that transfers the right to exclusive possession and use of the lessor’s real property to the lessee for a specified period of time and for a stated consideration.
Leasehold Estate
is a lessee’s right to occupy real property during the term of the lease, generally considered to be a personal property interest.
Lease Option
is a lease that gives the tenant the right to purchase the property at a later date usually at a predetermined price.
Lease Purchase
is an agreement in which a portion of the lease payment is applicable toward a set purchase price. Title is transferred from lessor to lessee when the lessor receives the predetermined price.
Legal Description
is a description of a specific parcel of real property complete enough for an independent surveyor to locate the real property.
Lessee
is the tenant.
Lessor
is the landlord.
Leverage
is the use of borrowed funds to purchase real property.
Lien
is a charge or claims that one person or entity has on the real property of another person or entity as security for a debt obligation.
Lien Theory States
are those states that treat a mortgage solely as a security interest in the secured real property with title retained by the mortgagor (owner). The borrower has the right to use and enjoy the property in the absence of default. In the event of default, lenders may foreclose. New Mexico is a lien theory state.
Life Estate
is an interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
Liquidated Damages
is a predetermined amount by parties to a contract as the total compensation to an injured party should the other party breach the contract.
Liquidity
is the ability to easily and quickly convert assets to cash equivalents.
Lis Pendens
or Litigation Pending is a recorded legal document giving constructive notice tat a legal action affecting a particular real property has been filed in court.
Listing Agreement
is a contract between an owner and a real estate broker by which the broker is employed to find a buyer for the owner’s real estate on the owner’s terms for which service the owner agrees to pay a commission.
Line of Credit
is the maximum amount of money a bank will lend to one of its most credit worthy customers without the submission of a loan application.
Listing Broker
is the broker in a multiple listing situation from whose office a listing agreement is initiated.
Littoral Rights
are the ownership rights of land owner’s with land that borders navigable waters.
Loan Origination Fee
is a fee charged by the lender to the borrower for the lender providing a loan. The origination fee is usually specified as a percentage of the total loan.
Loan to Value Ratio
is the ratio of the amount of the mortgage to the value of the real estate provided as collateral. (Loan Amount divided by the Appraised Value of the real estate) multiply by 100% to calculate a percentage.
Lot and Block
is a method of describing real property that indentifies a parcel of land by reference to a lot and block in a subdivision.
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Definitions Of Key Real Estate Key Terms L
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