A-Af Ag-Az B C D E F G H I JK L M N O P QR Sa-Sh Si-Sz T U V WXYZ
Real Estate Dictionary L
"LTV" - "low ball offer"
We try to provide as much information as possible to buyers of Ocala Real Estate. These terms and definitions apply pretty much nation wide, and we try to update with terms specifically relating to Florida Real Estate as soon as we come across something we've missed. We welcome your comments and suggestions!
L/V or LTV:
Short form for "Loan-to-value ratio".
LACHES:
Delay or negligence in asserting one's legal rights.
LAND:
Material of the earth, including the soil, rock and other substances.
LAND BANKING:
The practice of acquiring land now for future use.
LAND CONTRACT:
A contract ordinarily used in connection with the sale of a property in
cases where the seller does not wish to convey title until all or a certain part
of the purchase price is paid by the buyer, often used when property is sold on
small down payment.
LAND DESCRIPTIONS:
Necessary to definitely determine boundaries. Certain methods are
recognized by law and called legal descriptions.
LAND LEASE:
A rental agreement for the use of land but not the improvements thereon.
LAND SALE LEASEBACK:
An arrangement where a person sells property to another but immediately
rents it from the purchaser.
LAND RESIDUAL:
A method of appraising. The value of the building is subtracted from the
value of the property, leaving the value of the land.
LAND SALES CONTRACT:
A land contract.
LAND SURVEYOR:
A qualified professional who is trained to establish, measure and draw
out the boundaries of properties and the improvements (buildings and other
features) located thereon based on land records and site examinations.
LAND USE PLANNING
(REGULATION):
An effort by a municipality to establish guidelines for the use and
development of land within its boundaries.
LAND USE SUCCESSION:
The gradual change in the use of land in a neighborhood over a period of
years.
LAND/BUILDING RATIO:
A comparison of the value of the land with the value of the improvements
to that land.
LANDLOCKED:
A term describing a property that does not border on any public road.
LANDLORD:
Also known as "lessor". The owner of a property who allows other persons
to occupy a property in exchange for periodic payments of rent.
LANDMARK:
Any object which is fixed to the ground and may serve as a guidepost for
a survey or boundary. Also known as "monument".
LANDSCAPE ARCHITECT:
A professional designer of ground works who takes into consideration the
need for drainage, utilities installations, buildings, grading while creating a
pleasing appearance.
LATE CHARGE:
A fee or penalty to be paid to a lender for a payment which is delivered
after it is due.
LATENT DEFECTS:
Problems with a property or building which are not visible to the casual
observer but which may surface later. A vendor must disclose to a purchaser any
serious latent defects of which he has knowledge.
LATERAL SUPPORT:
The support which the soil of an adjoining owner gives to his neighbor's
land.
LAWFUL OBJECT:
Legal purpose. One of the four essential elements of a contract.
LEASE:
A contract between the owner and tenant setting forth conditions upon
which tenant may occupy and use the property, and the term of the occupancy.
LEASE WITH OPTION TO
PURCHASE:
A rental contract which allows the tenant to purchase the property during
the period of the lease. Payments under the lease may be credited (in whole or
in part) against the purchase price.
LEASE-PURCHASE
MORTGAGE LOAN:
A Fannie Mae loan which allows qualified persons to lease a property from
a nonprofit organization with an option to purchase the home. Payments are made
against the loan principal and interest but with a portion going into a savings
account toward the purchase price.
LEASED FEE:
Description of the ownership interest in a property of a landlord who has
rented the property to a tenant.
LEASEHOLD:
The interest of one who leases property. A less-than-freehold estate.
LEASEHOLD ESTATE:
An interest in a property for a period of time as specified under a
rental contract.
LEASEHOLD
IMPROVEMENTS:
Additions to a rented premises made by the tenant, often in the nature of
a fixture, which may be removed by the tenant at the end of the lease term if no
damage ensues to the premises and if the lease permits.
LEASEHOLD MORTGAGE:
A loan secured against a tenant's interest in a property.
LEGACY:
A gift of personal property by will.
LEGAL AGE:
Set by statute, the age at which a person ceases to be a minor and is
able to contract on his own behalf.
LEGAL DESCRIPTION:
A description recognized by law; a description by which property can be
definitely located by reference to government surveys or approved recorded maps.
LEGAL NAME:
Usually a person's full name as given at birth, may be changed by filing
the proper forms and paying the appropriate fee.
LEGAL NOTICE:
Informing one or more persons of a fact, action or intention in a period
of time and in a fashion required by a statute, contract or court order.
LEGAL RESIDENCE:
The place where one resides (may refer to a street address or, for income
tax purposes, a country of residence).
LEGAL TITLE:
The bundle of rights of ownership that a person acquires in purchasing a
piece of property, which may be defended against competing interests.
LEGATEE:
A person to whom personal property is given by will.
LENDER:
Any individual or company which provides money to third parties in return
for periodic payments of interest and principal over time.
LENDER OPTION
COMMITMENTS:
A contract between a lender and potential borrower which allows a lender
to provide certain loans at certain times on terms set out in the contract but
also allows the lender to choose not to provide such loans.
LENDER'S TITLE
INSURANCE:
A policy of Title Insurance which covers the interest of a lender on a
mortgage registered on title to a property.
LESS THAN FREEHOLD
ESTATE:
The interest of one who leases property. The right of exclusive
possession. A leasehold.
LESSEE:
One who contracts to rent property under a lease contract.
LESSOR:
An owner who enters into a lease with a tenant.
LET:
1. (Verb) To lease or rent part or all of a property to a third party.
2. (Noun) A served ball that strikes the net but still falls in to the service
court in tennis.
LETTER OF
COMMITMENT:
See commitment letter.
LETTER OF CREDIT:
An agreement between a bank and a borrower which allows the borrower to
use money on the bank's credit.
LETTER OF INTENT:
A written indication to the owner of property that the writer will be
making an offer to purchase the property.
LEVEL-PAYMENT
MORTGAGE:
A land loan which requires regular, even payments.
LEVERAGE:
Making money with borrowed money.
LEVY:
To charge or assess a tax or charge.
LIABILITIES:
The debts owed by a business.
LIABILITY INSURANCE:
A contract made with an insurance company to cover costs arising out a
person's responsibility for injuries to others.
LIABLE:
To be legally obligated or responsible for something or to someone.
LIBER:
Latin for "book", the volume in which land records are held.
LICENSE:
Personal, revocable, non-assignable permission to do some act on the land
of another.
LIEN:
A form of encumbrance which usually makes property security for the
payment of a debt or discharge of an obligation; example: judgments, taxes,
mortgages, deeds of trust, etc.
LIEN HOLDER:
The person who has the claim against the property.
LIEN WAIVER:
The surrender or passing up on one's right to a claim.
LIFE CAP:
The maximum interest rate chargeable under an adjustable or variable rate
mortgage over its life.
LIFE ESTATE:
An estate limited in duration to the life or lives of one or more
designated persons.
LIFE TENANT:
A person who enjoys rights of occupation of property for life.
LIFETIME PAYMENT
CAP:
The maximum increase or decrease in the amount of each periodic payment
allowable over the life of an adjustable or variable rate mortgage.
LIGATION BOND:
A written promise made by a borrower for a sum of money in excess of the
principal amount of the loan. The lender may sue the borrower on this promise.
LIKE-KIND PROPERTY:
Similar property.
LIMITED LIABILITY:
Responsibility or obligation which is restricted to the limits set out.
LIMITED PARTNERSHIP:
A partnership composed of some partners whose contribution and
liabilities are limited.
LINE OF CREDIT:
A very flexible form of loan in which the lender agrees to make a certain
amount of money available to the borrower at a certain rate of interest. The
borrower may use as much of the amount available as she wishes and may pay out
all or any part of the amount owing at any time or re-borrow such funds at her
leisure.
LINEAL MEASUREMENT:
The distance from one point to another measured in a straight line, along
the ground.
LINK:
A lineal measurement equaling 7.92 inches.
LIQUID ASSETS:
Assets readily convertible to cash.
LIQUIDATE:
Selling property to secure cash.
LIQUIDATED DAMAGES CLAUSE:
A clause in a contract specifying the damages in the event of a breach of
contract.
LIS PENDENS:
Suit pending, usually recorded so as to give constructive notice of
pending litigation.
LIST:
To place a property up for sale in the public forum, to add it to the
list of properties for sale.
LISTING BROKER
(AGENT):
The real estate professional who acts for the vendor in marketing a
property for sale. As opposed to Selling Broker (Agent) -- the agent
representing the purchaser.
LISTING:
An employment contract between principal and agent authorizing the agent
to perform services for the principal involving the latter's property; listing
contracts are entered into for the purpose of securing persons to buy, lease or
rent property. Employment of an agent by a prospective purchaser or lessee to
locate property for purchase or lease may be considered a listing.
LITIGATION:
Legal action in pursuit or furtherance of a claim.
LOAN:
See also mortgage. A transfer of money or other property from one party
to another upon the expectation that the money or other property will be
returned (often with additional payments as well).
LOAN APPLICATION:
The loan application is a source of information on which the lender bases
his decision to make the loan.
LOAN APPLICATION
FEE:
The charge paid by the borrower for the honor of requesting a loan and of
having the lender consider the request.
LOAN BROKER:
A person who negotiates the loans.
LOAN CLOSING:
When all conditions have been met, the loan officer authorizes the
recording of the trust deed or mortgage and disbursal of funds.
LOAN COMMITMENT:
Lender's contractual commitment to a loan based on the appraisal and
underwriting.
LOAN TO VALUE RATIO (LTV):
The amount of the loan expressed as a percentage of the appraised value.
LOCATION:
The most important factor in the value of a property.
LOCK OR LOCK IN:
Obtain a commitment from a lender to guarantee a certain interest rate or
other loan feature for a set period of time.
LOCK PERIOD:
The time span over which the lender guarantees a feature of a loan.
LOG CABIN:
A dwelling made of unfinished logs, rough in texture, old-fashioned,
rustic.
LOSS MITIGATION:
The duty of any person claiming damages against another person, actions
designed to alleviate the injury suffered or to reduce the cost of that injury
to that injured party.
LOT:
A measured section of land, often a particular parcel of land on a
registered plan.
LOT LINE:
The legal perimeter of a parcel of property, often shown on a survey of
the property.
LOW-BALL OFFER:
A slang term for an offer to purchase a property with an offered purchase
price much lower than that asked for. An attempt to take advantage of pressures
on the vendor to sell by asking him to accept much less than the property may be
worth.