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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "L"
Landscape
A home's surroundings can range from a shrub-studded emerald lawn
to a native-plant xeriscape. It is a major component of curb appeal.
Landscape
architect
A professional who holds a degree in landscape architecture, which
involves training in horticulture, landscape design and planning.
Landscape designer
A landscape designer has training in horticulture and landscape
planning, but does not necessarily hold a degree.
Landscape
contractor
A professional who carries out the plans of a landscape architect
or a landscape designer.
Late charge
A fee a lender imposes on a borrower when the borrower does not
make a payment on time.
Late payment
A payment a lender receives after the due date has passed.
Latent defect
An invisible problem in a piece of property such as bad wiring,
termite damage or lead paint.
Lead
A metallic chemical element present in older dwellings, primarily
in the form of lead-based paint and lead plumbing. Exposure to lead
has been found to be a health risk.
Lease
A binding agreement that contains the terms and conditions of a
renter's occupancy.
Leasehold estate
An arrangement in which the borrower does not own a specific piece
of property but possesses a long-term lease.
Lease
option
A lease that contains the right to purchase the property for a specific
price within a certain time frame.
Lender
A bank, savings institution or mortgage company that offers home
loans.
Legal blemish
Blemishes on a piece of property, such as a zoning violation or
fraudulent title claim.
Legal description
A specific way of identifying and locating a piece of real estate
that is acceptable to a court.
Letter of intent
A formal statement that the buyer intends to purchase the property
for a certain price on a certain date.
Leverage
The use of a small amount of cash--a 5 percent or 10 percent down
payment--to buy a piece of property.
Liabilities
A borrower's debts and financial obligations.
Liability
insurance
A policy that protects owners against any claims of negligence,
personal injury or property damage.
Lien
A claim laid by one person or company on the property of another
as security for money owed.
Life cap
A limit on the amount that a loan rate can move during the term
of the mortgage. For example, the rate on an adjustable-rate mortgage
that begins at 5 percent and has a lifetime cap of 6 percentage
points cannot rise above 11 percent, even if rates on fixed-rate
mortgages soar to 20 percent.
Life-cycle
cost analysis
An analysis of a building project's expected operating, maintenance
and replacement costs, calculated by an architect.
Limited partnership
Real estate syndicates and other investment groups use this type
of ownership.. A general partner makes the group's investment decisions,
oversees the investment and is principally liable for any losses.
Lintel
A horizontal piece over a door or window that carries the weight
of the structure above it.
Liquid assets
Cash and
all other assets that can be converted to cash relatively quickly.
Liquid assets can include money in savings and checking accounts,
money-market accounts, and most certificates of deposit.
Liquidated damages
When a real estate deal goes awry, one party often is entitled to
liquidated damages, a sum of money set out in the purchase contract
in that event.
Listing
A piece of property placed on the market by a listing agent.
Listing
inventories
The known number of houses for sale within a given market.
Live-in
partnership
An arrangement in which two unrelated people purchase a home.
Live-work
space
An officially designated dwelling in which the occupant conducts
a home-based business or enterprise.
Load-bearing
wall
A wall that supports not only its own weight, but the weight of
other parts of a home. Also called a bearing wall.
Loan application
The first step toward submitting a home loan requires the borrower
to itemize basic financial information.
Loan
application fee
A fee charged by lenders to for making a loan application.
Loan commitment
A promise by a lender or other financial institution to make or
insure a loan for a specified amount and on specific terms.
Loan officer
An official representative of a lending institution who is empowered
to act on behalf of the lender within certain limits.
Loan
origination fee
Most lenders charge borrowers an origination fee--or points--for
processing a loan. A point is 1 percent of the total loan amount.
Loan processing fee
A fee charged by some lenders for gathering information to enable
the lender to process the loan.
Loan term
The amount of a time set by the lender for a buyer to pay a mortgage.
Most conventional loans have 30-year or 15-year terms.
Loan
-to-value ratio
A technical measure used by lenders to assess the relationship of
the loan amount to the value of the property
Lock-in
When interest rates are volatile, many borrowers want to "lock
in" an interest rate and many lenders will oblige, setting
a limit on the amount of time the lock-in is in effect.
Loft
A living space not partitioned into rooms or a small space built
above a larger room.
Log
cabin
Homes constructed of roughhewn timbers and a standard housing form
in the early European settlement of the U.S.
Low-ball offer
An offer made to a seller that is substantially below market value.
The longer a property stays on the market, the more likely there
are to be such offers.
Low
density
A low concentration of housing units in a specific area.
Low-documentation
loan
A mortgage that requires only minimal verification of income and
assets.
Low-down-payment loan
A home loan that requires the borrower to make only a small down
payment before obtaining the financing needed to purchase a house.
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