Real Estate Glossary L

Click on the beginning letter of the real estate term to find the definition.

A B C D E F G H I J M N O P Q R S T U V W Y

Land Contract: A security device used in the sale of real property. The buyer contracts to pay the purchase price in installments. The seller contracts that when the purchase price is paid in full, he will deed the property to the buyer. Until the purchase price is paid in full, the seller keeps legal title. Also called conditional sales contract, contract for deed, or contract of sale.

Late Charge: A specified charge added by a creditor under his note or contract when the debtor makes his payment late or after a certain date.

Lead: A piece of information of possible use in the search for a prospective client.

Legal Description: A description of real estate sufficient to allow a competent surveyor to locate the property on the ground.

Level Payments: Payments of equal size.

Leverage: The ratio of debt to total assets.

Lien: A legal right or claim upon a specific property that attaches to the property until debt is satisfied.

Lien Release: A written agreement by a lien holder releasing the debtor from further obligation.

Limited Liability Company: A form of business structure designed to combine the best of corporate and partnership attributes into one entity.

Limited Partnership: A special type of partnership with one or more general partners who manage the business and are responsible for its debts, and one or more limited partners who take no part in its management and are not responsible for its debts.

Loan-to-value ratio: A ratio of how much is owed on the property to the appraised value of the property. Used as a measure of how heavily mortgaged a property is and how likely the owner is to default on his or her debts.

Lock-in-clause: A clause in a note, mortgage or trust deed setting a period during which no prepayment is allowed on the loan.