| LAND BURDEN |
An agreement granting limited permission to use the property. Same as
SERVITUDE.
|
| LAND CONTRACT |
An installment contract for sale with the buyer receiving equitable
title and the seller retaining legal title.
|
| Late Charge |
Additional charge that a borrower is required to pay as a
penalty for failing to pay a regular installment when due.
|
| Lease |
Written document containing the conditions under which the
possession and use of real and/or personal property are given by the
owner to another for a stated period and for a stated consideration.
|
| LEASEHOLD |
A tenant’s right to occupy real estate during the term of the lease.
This is a personal property interest.
|
| Leasehold Estate |
Method of holding title to a property in which the
mortgagor does not actually own the property but rather has a recorded
long-term lease on it.
|
| LEASE OPTION TO PURCHASE |
A lease containing a clause that allows the tenant the right to purchase
the property under specified conditions.
|
| LEGAL DESCRIPTION |
A method of geographically identifying a parcel of land that is
acceptable in a court of law.
|
| LEGAL TITLE |
The manner in which property ownership is recorded with the county in
which the property is located . See also VESTING.
|
| Liability Insurance |
Insurance coverage that offers protection against
claims alleging that a property owner's negligence or inappropriate
action resulted in bodily injury or property damage to another party.
|
| LIBOR
|
An acronym for London Interbank Offered Rate, one of several published
indices. It’s the average rate of interest that major London banks
charge as they lend to one another.
|
| Lien |
Legal hold or claim of one person on the property of another as
security for a debt or charge. The right given by law to satisfy debt.
|
| LIEN POSITION |
The order in which liens will be repaid when the property is transferred
to a new owner.
|
| LIFETIME CAP
|
This is the cap that limits how high an interest rate can increase over
the life of an adjustable-rate mortgage loan . Example: Start rate + 6%
= lifetime Cap
|
| Life Estate |
Freehold estate giving a beneficiary all property rights,
except the right to sell. The estate is terminated upon the death of the
beneficiary.
|
| Limited Partnership |
Partnership that consists of one or more general
partners who are fully liable, and one or more limited partners who are
liable only for the amount of their investment.
|
| LINES OF CREDIT |
A type of mortgage loan from which borrowers can write a check or draw
funds. Some lines of credit are also balloon loans. Usually the borrower
is given 5 to 10 years to use the line of credit. After this period,
many lines of credit require the borrower to pay the loan in full.
Others may require the loan to be paid in full over the next 10 to 15
years.
|
| Line Item Budget/Cost Breakdown |
A detailed listing of the actual costs
of the construction for an OTC loan. This includes the cost of labor,
all building materials, and any other costs associated with
construction.
|
| LIQUID ASSETS
|
Cash or assets, such as checking/savings accounts, stocks/bonds, that
are immediately convertible to cash.
|
| Liquidity |
Cash position based on assets that can readily be converted
to cash.
|
| Lis Pendens |
Latin phrase meaning a notice recorded in the official
records of a county to indicate that there is a pending suit affecting
the lands within the jurisdiction.
|
| Listing |
Written authorization to sell or lease real estate.
|
| LOAN AMOUNT |
The amount of money originally lent to a borrower.
|
| LOAN APPLICATION (1003) |
The form potential customers must complete to apply for a home loan.
This application is commonly referred to as “the 1003” and is produced
by the Federal government. See also 1003.
|
| Loan-to-Value (LTV) Percentage |
Relationship between the unpaid
principal balance of the mortgage and the property's appraised value (or
sales price if it is lower). This ratio is expressed to a potential
purchaser of property in terms of the percentage a lending institution
is willing to finance.
|
| LOAN RISK |
The risk category assigned to a loan, which estimates the probable risk
of delinquency and loss in the future.
|
| LOAN TERM |
The loan term is the period of time over which the loan will be paid.
First mortgage loans typically have terms of 30, 20 or 15 years.
|
| LOAN TO VALUE RATIO (LTV) |
The loan amount in relationship to the appraised value or selling price
expressed as a percentage.
|
| Loft Style Condominium |
Condominium project with units on one or
more floors of old warehouse or factory-type buildings in urban areas.
|
| "Look-Back" Period |
Date on which the index value that will be used to
establish the next interest rate change for an ARM is determined. It is
a specified number of days (usually 30 to 45) before the interest rate
change date.
|
| LOSS PAYABLE CLAUSE |
A clause in an insurance policy listing the priority of claims in the
event of destruction of the property insured. Generally, a mortgage or
beneficiary under a deed of trust is the party appearing in the clause,
being paid up to the amount owing under the mortgage or deed of trust
before the owner is paid.
|
| Lot |
| Measured parcel of land having fixed boundaries as shown on the
recorded plat. |
