Real Estate Glossary Terms Beginning With – L

Updated: November 22, 2021

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Terms Beginning With - L

Property Development & Investment Glossary, Terms & Definitions

Land

The part of the earth's surface that isn't covered in water.

Land banking

The acquisition of land for future use.

Land contract

A property transaction in which the seller keeps title to the property while the buyer is given possession and receives ownership after a set debt payoff.

Land lease

A ground lease is a contract that allows you to rent land

Landlocked

A property that does not have access to a public roadway is said to be in this state.

Landlord

The person or company who owns a property that is leased to a tenant.

Land packaging

The combining of numerous smaller plots of land into a bigger plot for a specific purpose.

Land sale leaseback

The sale of property and the subsequent leaseback of the land by the seller, who then becomes the landowner's tenant.

Land trust

A type of real estate ownership that allows for restricted responsibility, conventional tax status, and private ownership.

Latent defects

Hidden flaws that will manifest themselves in the future.

Lease

A lease agreement for the use of rented property.

Leasehold

A lease is a legal agreement between a renter and the owner of an interest or estate.

Leasehold mortgage

The tenant's interest in the property is encumbered by a lien.

Lease with option to purchase

A lease that gives the lessee the right to acquire property at a certain price and on predetermined terms at a predetermined date.

Leasing agent

A person in charge of leasing office space in a building.

Legal description

A property description that allows it to be located on government surveys or documented maps.

Legal name

For formal reasons, this is the name.

Legal notice

Other parties must be notified using the means authorised by law.

Legatee

A person who inherits property through a will.

Lender

A person or company that loans money to a borrower in exchange for a fee and expects to be repaid in the future.

Lessee

The occupant of a leased property.

Lessor

The person who grants a lessee a lease.

Letter of intent

A nonbinding declaration of intent subject to the approval and additional documentation of a third party.

Level payment mortgage

During the amortisation phase of a mortgage, the same payment is payable each month.

Leverage

The use of borrowed funds to make a purchase.

Levy

To levy or get access to a tax on a person or a piece of property.

Liability

A broad phrase that refers to all sorts of debt and liabilities.

Liability insurance

Insurance coverage for a property that covers any claims arising from personal injury or damage to the property of others.

License

Authority.

License laws

The laws of a state that control real estate salespersons' activity.

Lien

A debtor's claim against a property.

Life estate

A freehold interest in real estate that will terminate upon the owner's death or the death of another person.

Life tenant

A person who has the right to utilise property for the rest of his or her life or the life of another person.

Like-kind property

Property that is of the same type in a trade.

Limited liability

The investor's liability is restricted to the amount invested.

Limited partners

Investors who have no personal liability beyond their participation in a limited partnership.

Limited partnership

A partnership in which the contributions and liabilities of some partners are restricted.

Liquidated damages

In the case of a contract violation, one party will compensate the other for an agreed-upon amount.

Liquidity

Assets that can be turned into cash quickly.

Lis pendens

"Suit pending" (Latin).

List

In order to obtain a list.

Listing

A contract that allows an agent to sell a property on behalf of the owner.

Loan

A loan of money for a specific period of time.

Loan application

A documented application that includes all of the information a lender requires before providing a loan commitment.

Loan commitment

A mortgage loan agreement is a written contract created by a lender that outlines the terms and conditions of the loan.

Loan constant

The monthly mortgage payments that amortise a loan are calculated using a factor or multiplier.

Loan-to-value ratio (LVR)

The proportion of a property's appraised worth that a lender will lend to a borrower.

Location

A reference to a site's comparative advantages in terms of ease, transportation, and social benefits, among other things.

Luck-in period

A certain amount of time during which a debt cannot be repaid.

Long-term capital gains

The gain on a capital asset kept for a specific amount of time for income tax purposes.

Lot and block

A means of identifying a piece of property.

Low-rise

A structure with one to three levels and usually no elevator.

Glossary Index

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