Real Estate Glossary

L

Land Contract
Installment plan for buying a house. It is used as an alternate to obtaining a loan from a traditional source such as a mortgage banker or savings and loan.

Late Charge
An additional charge paid by a borrower as a penalty for failure to pay a regular installment on a loan when due.

Lease
An agreement that does not convey ownership but does convey possession and use for a period of time and for compensation.

Lease with Option to Purchase
A lease under which the lessee has the right to purchase the property. The option may run for the length of the lease or only for a portion of the lease period.

Legal Description
A property description that is a written identification of a specific parcel of land and its location without additional oral testimony. Recorded documents generally require a legal description.

Lender
A general term encompassing all mortgages, and beneficiaries under deeds of trusts.

Lenders Instructions
A document that lenders prepare for the closing agent that outlines the requirements for loan closing.

Lessee
A tenant or leaseholder; party given a lease.

Lessor
The landlord or owner; party granting a lease.

Letter of Intent
A formal method of stating that a prospective developer, buyer or lessee, is interested in property.

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

Lien
A claim on property for payment of some obligation or debt.

Lien Affidavit
A sworn, written statement made by an individual or entity regarding presence of liens on a particular parcel of real estate.

Lien Waiver
A written document in which the grantor relinquishes the right to place or maintain a lien on a specific parcel of real estate.

Life Estate
An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party.

Lis Pendens
A notice that litigation is pending on a property.

Listing Agreement
Agreement between a property owner and a real estate owner, authorizing the broker to find a buyer for the property. If the sale is consummated, the listing broker will be paid a fee.

Loan Officer
A person that helps borrowers through the loan selection, processing and closing of a mortgage loan.

Loan Servicing
The act of collecting and applying regular payments, paying taxes and insurance, and performing collection and foreclosure activities as they relate to mortgage loans.

Loan Submission
The act of an originating lender presenting a completely documented mortgage loan application file to an investor for the purpose of obtaining the investor's commitment to purchase the loan.

Loan to Value Ratio (LTV)
The ratio of the amount of your loan to the appraised value of the home. The lower the loan to value the more favorable the terms and conditions of the programs offered by lenders.

Loss Payee Clause
An insurance policy provision for payment of a claim to a person or entity other than the named insured in the policy.

Lot
Measured parcels of land having fixed boundaries as shown on the recorded plat.