A B C D E F G H I J K [L] M N O P Q R S T U V W X Y & Z
Laches – 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 – The earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.
Land contract – A contract where the seller (also known as the vendor) retains legal title. The buyer (called the vendee) takes possession and gets equitable title to the property. Also called a contract for deed, a bond for title, an installment contract, a land sales contract, or articles of agreement for warranty deed.
Landfill – An enormous hole, either excavated for the purpose of waste disposal or left over from surface mining operations.
Latent defect – A hidden structural defect that could not be discovered by ordinary inspection and that threatens the property’s soundness or the safety of its inhabitants. Some states impose on sellers and licensees a duty to inspect for and disclose latent defects.
Law of agency – See agency.
Lead – Material used as a pigment and drying agent in alkyd oil-based paint.
Lease – A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). By state law leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.
Leasehold estate – A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest.
Lease option – A lease under which the tenant has the right to purchase the property either during the lease term or at its end.
Lease purchase – The purchase of real property, the consummation of which is preceded by a lease, usually long-term. Typically done for tax or financing purposes.
Legacy – A disposition of money or personal property by will.
Legal description – A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it.
Legally competent parties – People who are recognized by law as being able to contract with others; those of legal age and sound mind.
Lessee – The owner of real estate in a lease. See also lease.
Lessor – The tenant in a lease. See also lease.
Leverage – The use of borrowed money to finance an investment.
Levy – To assess; to seize or collect. To levy a tax is to assess a property and set the rate of taxation. To levy an execution is to officially seize the property of a person in order to satisfy an obligation.
Liability coverage – Special insurance that provides coverage for injuries or losses sustained.
License
- A privilege or right granted to a person by a state to operate as a real estate broker or salesperson.
- The revocable permission for a temporary use of land–a personal right that cannot be sold.
Lien – A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.
Lien theory – Some states interpret a mortgage as being purely a lien on real property. The mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults.
Life cycle costing – In property management, comparing one type of equipment with another based on both purchase cost and operating cost over its expected useful lifetime.
Life estate – 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.
Life tenant – A person in possession of a life estate.
Limited liability company (LLC) – Combines the most attractive features of limited partnerships and corporations. Members of an LLC enjoy the limited liability offered by a corporate form of ownership and the tax advantages of a partnership. Also offers flexible management structures without complicated requirements of S corporations or the restrictions of limited partnerships.
Limited partnership – Consists of one or more general partners as well as limited partners. The limited partners are not legally permitted to participate and each can be held liable for business losses only to the extent of his or her investment. See partnership.
Liquidated damages – An amount predetermined by the parties to a contract as the total compensation to an injured party should the other party breach the contract.
Liquidity – The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time.
Lis pendens – A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court.
Listing agreement – A contract between an owner (as principal) and a real estate broker (as agent) by which the broker is employed as agent 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.
Listing broker – The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to the cooperating broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the cooperating broker may be the same person.
Littoral rights
- A landowner’s claim to use water in large navigable lakes and oceans adjacent to his or her property.
- The ownership rights to land bordering these bodies of water up to the high-water mark.
Loan origination fee – A fee charged to the borrower by the lender for making a mortgage loan. The fee is usually computed as a percentage of the loan amount.
Loan-to-value ratio – The relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral.
Lot-and-block (recorded plat) system – A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat.
