Real Estate Glossary

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L

liability

In an accounting system, it's all amounts on the credit side, including the amounts owed.
It is legal responsibility for an act.

liability coverage

insurance 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 theory

Some 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.

liens

are 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.

Keyword(s):

life estate

is 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.

Keyword(s):

Limited liability company

Is 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.

Control - can manage business directly or may appoint non-member managers to operate.
Liability - limited liability in the same way shareholders do in the corporation.
Taxes - two or more members as a partnership for tax purposes.
Administrative obligations - resembles the creation of corporations.

Limited partnership

A 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.

Control - only the general partners may operate and manage the business
Liability - limited partners are typically liable only for the amount invested
Taxes- income from the partnership flows to each partner based on his or her share of ownership
Administrative obligations - requires registration with the secretary of state

limited warranty deed

A 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.

Keyword(s):

linkage

is 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.

Keyword(s):

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