Word | Definition |
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.
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Late charge | A fee a lender imposes on a borrower when the borrower does not make a payment on time.
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Late payment | A payment a lender receives after the due date has passed.
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Latent defect | An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.
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Lease | An agreement in writing, constituting a conveyance of property for a period of time with a contract for its possession during that time.
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Lease option | A lease that contains the right to purchase the property for a specific price within a certain time frame.
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Leasehold estate | An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
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Legal blemish | Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
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Legal Description | Description of real property as used in legal documents in contrast to a street address which the property is usually known. Legal descriptions
usually refer to recorded maps, surveys or other public documents.
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Lender | A bank, savings institution or mortgage company that offers home loans.
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Lessee | The tenant under a lease.
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Lessor | The landlord under a lease. |
Letter of intent | A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
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Leverage | The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
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Liabilities | A borrower's debts and financial obligations.
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Liability insurance | A policy that protects owners against any claims of negligence, personal injury or property damage.
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Lien | A charge or instrument recorded on real property in order to secure payment or satisfaction of a debt or other obligation.
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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.
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Life-cycle cost analysis | An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
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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.
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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.
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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.
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Lis Pendens | A recorded notice of a pending law suit placed against real property.
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Listing | A piece of property placed on the market by a listing agent.
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Listing inventories | The known number of houses for sale within a given market.
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Live-in partnership | An arrangement in which two unrelated people purchase a home.
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Live-work space | An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
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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.
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Loan -to-value ratio | A technical measure used by lenders to assess the relationship of the loan amount to the value of the property
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Loan Application | A pre-loan document which is required by the lender that includes information from the borrower such as, borrower’s financial and employment information, personal information and a description of the loan being applied for.
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Loan application fee | A fee charged by lenders to for making a loan application.
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Loan Approval | The lenders loan commitment to the borrower on a property. This approval should include the interest rate, any conditions prior to funding, a summary of the terms of the loan and a date by which the escrow is to close.
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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.
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Loan officer | An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
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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
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Loan Policy | A policy of title insurance insuring the interest of a lender (ALTA).
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Loan processing fee | A fee charged by some lenders for gathering information to enable the lender to process the loan.
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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.
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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.
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Loss Payable Clause | An endorsement to a fire insurance policy specifying the parties entitled to participate in proceeds in the event of a loss.
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Low density | A low concentration of housing units in a specific area.
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Low-documentation loan | A mortgage that requires only minimal verification of income and assets.
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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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