|
Land
contract |
See Contract for
deed |
|
Late
charge |
The penalty a
borrower pays when a payment is made after the due
date |
|
Lease |
A written agreement
between the property owner and a tenant that stipulates rent
to be paid, as well as the terms under which the tenant may
reside in the real estate for a designated period of
time |
|
Leasehold
estate |
The tenant's right
to title to a property for a specific period of time whereby
the tenant does not actually own the property but has a
long-term lease on it |
|
Lease
option |
A lease that gives
the tenant the right to purchase the property, either during
the lease term or at its end |
|
Lender's Title
Insurance |
An insurance policy
covering a lender for the loan amount, whereby the coverage
declines in amount as the loan is paid off, to the point where
there coverage ends when the loan is paid
completely |
|
Lessee |
The individual or
party who takes property upon a lease |
|
Lessor |
The individual or
party who grants property upon a lease |
|
Liabilities |
An individual's
financial obligations |
|
Lien |
A legal claim or
charge allowed to a creditor against a debtor's property that
must be paid when the property is sold to transfer
title |
|
Life
estate |
The right to use,
occupy and own, for the duration of the life of the
individual |
|
Lifetime payment
cap, or Lifetime rate cap |
The limit on the
amount that payments can increase or decrease over the term of
an adjustable-rate mortgage (ARM) |
|
Liquid
asset |
Cash, or an asset
that can be readily converted into cash |
|
Liquidated
damages |
The compensation
predetermined by both parties to a contract to be paid to the
injured party, should the other party breach the
contract |
|
Lis
pendens |
A legal document
filed in either a federal or state court indicating that a
suit is pending against property located in the county where
the notice is recorded |
|
Listing
agreement |
A contract by which
a broker is employed by the seller to find a buyer for the
seller's real estate, according to the seller's terms, and for
which service, the broker is paid a
commission |
|
Listing
broker |
A broker whose
office initiates the property listing (as opposed to the
cooperating broker, whose office negotiates the sale); the
listing broker and the cooperating broker may be the same
person |
|
Loan
origination |
The process by which
a lender sets up a mortgage loan secured by real
property |
|
Loan origination
fee |
The fee charged by
the lender to the borrower for setting up a mortgage loan,
usually computed as a percentage of the total mortgage
amount |
|
Loan-to-value
(LTV) percentage |
The proportion of
the amount of the mortgage loan against the appraised value or
sales price of the piece of property being pledged as
collateral; e.g., a home with appraised value of $100,000 but
with a $90,000 mortgage has a LTC of 90
percent |
|
Lock-in |
A guaranteed
interest rate established at the time of closing which is
honored if the mortgage closes within a certain period of
time, also usually establishing the number of points to be
paid at closing as well |
|
Lock-in
period |
The time period
during which the set interest rate is guaranteed to the
borrower |
|
Loss Payable
Clause |
A provision in an
insurance policy that provides payment for any loss to two or
more parties, as their interest so justifies, the two parties
typically being the owner and the lender |
|
Lot |
A parcel of land
with fixed boundaries as determined by a
survey |
