landthe 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. |
law of agencydefines the rights and duties of the principal and the agent. It applies to a variety of business transactions. Contract law and real estate licensing law combine with the law of agency to interpret the relationship between licensees and their clients. |
leaseis a contract between the owner and the party who will occupy the real estate. |
leased feeis the owner’s interest in rented or leased property. The owner gives up his right of possession in exchange for the income from rent and the return of the property at the end of the lease. The tenant acquires a leasehold interest. Fee Simple = Leased Fee + Leasehold |
leaseholdis the is the tenant’s interest in real property. The tenant acquires the right of possession from the property owner in exchange for rent. Normally, the leasehold interest in rented property is worth nothing and the leased fee and fee simple are equal Fee Simple = Leased Fee + Leasehold |
leasing agentAgent is employed either by the owner directly or through the owner's property manager. Typical leasing agent services include:
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legal descriptionA description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it. |
legal willis the device used to direct the distribution of an estate upon the death of the owner. |
lesseethe tenant |
lessorthe landlord |
liability
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liability coverageinsurance provided to protect policyholder against financial losses resulting from claims of bodily injury or property damage. |
license(1)A privilege or right granted to a person by a state to operate as a real estate broker or salesperson.. (2)The revocable permission for a temporary use of land - a personal right that cannot be sold. |
lien theorySome states interpret a mortgage as being purely a lien on real property. The mortgagee has no right of possession but must forclose the lien and sell the property if the mortgagor defaults. |
liensare financial interests in real estate held by someone other than the owner of the property. Financial interests can be created voluntarily when borrowing money to finance real estate or involuntarily by creditors. Liens affect the real estate title and may affect the transfer of ownership. The party holding the lien is called the lienor. The owner of the property subject to the lien is called the lienee. |
life estateis an interest in real estate with a duration that lasts the lifetime of the holder. For estate planning - through a life estate, an owner can provide shelter for a loved one while retaining control of the ultimate disposition of the property. Life estates are generally not considered estates of inheritance because the life estate ends with the death of the estate holder. |
Limited liability companyIs a hybrid comprised of the better features of a corporation and the better features of a partnership. They may have perpetual existence and offers limited liability to the owners (called “members”) along with pass-through of the business’s income to the member’s personal tax return as in a partnership.
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Limited partnershipA partnership where there are general partners who operate and manage the business and limited partners who do not operate but are, in effect, investors in the business with an ownership interest.
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limited warranty deedA limited warranty deed (also known as a limited warranty deed) limits the grantor's warranty forever to title claims arising during the period of time that the grantor owned property. |
linkageis the factor(s) that cause neighbors to feel connected. Linkages can be anything from a transportation system that permits easy movement within the neighborhood to the social bonds that encourage people to feel a part of the community. Examples include ties resulting from participation in religious exercises, local employment, schools, or other social interaction. |
liquidated damagesare those damages specified in the contract as the remedy in the event of a default or breach of contract. Often for new construction a liquidated damages clause is included indicating a fee associated with each day the construction is not completed. |
lis pendensA 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 agreementA contract between an owner 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. |
littoralrights granted to owners of land bordering on non-flowing waters such as large lakes and oceans to have access to the water for reasonable uses. |
Loan Estimate (LE)three page document that has the accounting for borrowers of the loan. |
Loan origination feeThe processing of a mortgage application is known as loan origination. When a mortgage loan is originated, a loan origination fee, or transfer fee, is charged by most lenders to cover the expenses involved in generating the loan. |
loan-to-value ratiothe ratio which expresses the relationship betweeen the amount of money borrowed and the value of the subject property. |
Local Improvement District (LID)An assessment (i.e., tax) on a local improvement district for a public improvement project the district has approved. |
locational factorsis one of the four basic categories of adjustments; which are: terms and conditions of sale; date of sale; locational factors; and physical factors. Locational factors permit adjustments for differences associated with advantages or disadvantages in location between the subject and comparables. Locational factors include physical, social, economic, and political differences that influence the prices paid for real estate. Example: A subject is located at the entrance to the subdivision off a busy street. Comparables are all located within the same subdivision. The appraiser analyzes any affect from the subject property location against the comparable locations and makes appropriate adjustments for any difference in value. |
lot-and-block (recorded plat) systemA 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. |