LATCHES undue delay or negligence in asserting one's legal rights, possibly leading to estoppel of negligent party suit

LAND the surface of the earth; any part of the surface of the earth

LAND BANKING the activity of purchasing land that is not presently needed for use.

LAND/BUILDING RATIO a ratio of relative values of the land to improvements. Contrast with improvement ratio.

LAND CONTRACT a real estate installment selling arrangement whereby the buyer may use, occupy, and enjoy land, but no deed is given by the seller (so no title Passes) until all or a specified part of the sale price has been paid. Same as contract for deed and installment land contract

LAND ECONOMICS the branch of economics that concentrates upon the economic attributes of land and the economics of agriculture.

LAND LEASE only the ground is covered by the lease.

LANDLOCKED the condition of a lot that has no access to a public thoroughfare except through an adjacent lot. Compare with easement, right-of-way.

LANDLORD one who rents property to another; a lessor. A property owner who surrenders the right to use property for a specific time in exchange for the receipt of rent.

LANDMARK a fixed object serving as a boundary mark for a tract of land. Same as monument

LAND RESIDUAL TECHNIQUE in appraisal, a method of estimating the value of land when given the net operating income (NOI) and value of improvements. Used for feasibility analysis and highest and best use.

LAND SALE-LEASEBACK the sale of land and simultaneous leasing of it by the seller, who becomes the tenant.

LANDSCAPE ARCHITECT a professional who designs building sites, subdivisions, and other projects which require work on drainage, grading, vegetation, installation of utilities and site improvements.

LAND, TENEMENTS, AND HEREDITAMENTS a phrase used in early English law to express all sorts of real estate.

LAND USE INTENSITY a measure of the extent to which a land parcel is developed in conformity with zoning ordinances.

LAND USE PLANNING an activity, generally conducted by a local government, that provides public and private land use recommendations consistent with community policies. Generally used to guide decisions on zoning.

LAND USE REGULATION government ordinances, codes, and permit requirements intended to make the private use of land and natural resources conform to policy standards.

LAND USE SUCCESSION a change in the predominant use of a neighborhood or area over time.

LATENT DEFECTS flaws that are hidden but are apt to surface later.

LATE PAYMENTS a fee added to a bill after the expiration of a specific grace period. Such payments are intended to encourage timely payment of the bill.

LEASE a contract in which, for a payment called rent, the one entitled to the possession of real property (lessor) transfers those rights to another (lessee) for a specified period of time.

LEASED FEE the landlord's ownership interest of a property that is under lease.

LEASEHOLD the interest or estate on which a lessee (tenant) of real estate has a lease.

LEASEHOLD IMPROVEMENTS fixtures attached to real estate that are generally acquired or installed by the tenant. Upon expiration of the lease, the tenant can generally remove them, provided such action does not damage the property nor conflict with the lease.

LEASEHOLD MORTGAGE a lien on the tenant's interest in real estate.

LEASEROLD VALUE the value of a tenant's interest in a lease, especially when the rent is below market and the lease has a long remaining term.

LEASE WITH OPTION TO PURCHASE a lease that gives the lessee (tenant) the right to purchase the property at an agreed-upon price under certain conditions.

LEGAL AGE the official standard of maturity upon which one is held legally responsible for one's acts. Contracts for the sale or lease of real estate by a minor are voidable by the minor.

LEGAL DESCRIPTION legally acceptable identification of real estate by one of the following: * the government rectangular survey * metes and bounds * recorded blue (lot and block number)

LEGAL NAME the name one has for official purposes.

LEGAL NOTICE notification of others using the method required by law.

LEGAL RESIDENCE generally one's permanent home.

LEGAL TITLE a collection of rights of ownership that are defined or recognized by law or that could be successfully defended in a court of law.

LEGATEE one who receives property by will.

LESSEE a person to whom property is rented under a lease. A tenant. Compare with lessor. .

LESSOR one who rents property to another under a lease. A landlord. Compare with lessee.

LESS THAN FREEHOLD ESTATE an estate in land that has a predetermined time span; most commonly a leasehold.

LET to rent a property to a tenant.

LETTER OF COMMITMENT official notification to a borrower of the lender's intent to grant a loan. Generally specifies the terms of the loan and sets a date for the closing.

LETTER OF CREDIT an arrangement, with specified conditions, whereby a bank agrees to substitute its credit for a customer's.

LETTER OF INTENT the expression of a desire to enter into a contract without actually doing so.

LEVEL-PAYMENT MORTGAGE requires the same payment each month (or other period) for full amortization.

LEVERAGE use of borrowed funds to increase purchasing power and, ideally, to increase the profitability of an investment.

LEVY to legally impose or collect that which is due.

LIABILITY 1. a debt or financial obligation. Contrast with asset. 2. a potential loss.

LIABILITY INSURANCE protection for a property owner from claims arising from injuries or damage to other people or property.

LIABLE responsible or obligated. Contrast with exculpatory clause and nonrecourse

LIBOR London Interbank Offered Rate. The rate that international banks dealing in Eurodollars charge each other for large loans. Some domestic banks use this rate as an index for adjustable rate mortgages.

LICENSE 1. permission. 2. a right granted by a state to an individual to operate as a real estate broker or salesperson.

LICENSED APPRAISER generally an appraiser who meets certain state requirements, but lacks the experience or expertise of a certified appraiser.

LICENSEE one who holds a real estate license; a licensed salesperson or broker.

LICENSE LAWS laws that govern the activities of real estate salespersons.

LICENSING EXAMINATION a written test given to a prospective real estate broker or salesperson to determine ability to represent the public in a real estate transaction. Most states offer examinations on at least 5 dates each year.

LIEN a charge against property making it security for the payment of a debt, judgment, mortgage, or taxes; it is a type of encumbrance. A specific lien is against certain property only. A general lien is against all of the property owned by the debtor.

LIENHOLDER one who holds, or benefits from, a lien.

LIEN, JUNIOR a lien that will be paid after earlier liens have been paid.

LIEN-THEORY STATES states whose laws give a lien on property to secure debt. Contrasted with title theory states in which the lender becomes the title owner. In either case the borrower has the right to use and enjoy the property in the absence of default; in the event of default, lenders may foreclose.

LIFE ESTATE a freehold interest (in real property) that expires upon the death of the owner or some other specified person (pur autre vie).

LIFE OF LOAN CAP a contractual limitation on the maximum interest rate that can be applied to an adjustable rate mortgage during the term of the loan.

LIFE TENANT one who is allowed to use property for life or the lifetime of another designated person..

LIKE-KIND PROPERTY property having the same nature.

LIMITED LIABILITY the restriction of one's potential losses to the amount invested. The absence of personal liability

LIMITED PARTNERSHIP one in which there is at least one partner who is passive and limits liability to the amount invested, and at least one partner whose liability extends beyond monetary investment.

LINCOLN GRADUATE CENTER an organization that offers real estate education, especially appraisal courses.

LINEAL FOOT a measure of one foot, in a straight line, along the ground.

LINE OF CREDIT an agreement whereby a financial institution promises to lend up to a certain amount without the need to file another application.

LIQUIDATE 1. to dissolve a business. . 2. to retire debts.

LIQUIDATED DAMAGES an amount agreed upon in a contract that one party will pay the other in the event of a breach of the contract

LIQUIDITY ease of converting assets to cash.

LIS PENDENS Latin: "suit pending." Recorded notice of the filing of a suit, the outcome of which may affect title to a certain land.

LIST to obtain a listing.

LISTING 1. a written engagement contract between a principal and an agent, authorizing the agent to perform services for the principal involving the latterÕs property. 2. a record of property for sale by a broker who has been authorized by the owner to sell. 3. the property so listed.

LISTING BROKER (AGENT) the licensed real estate broker (agent) who secures a listing of the property. Contrast with selling broker (agent).

LITIGATION the act of carrying on a lawsuit.

LITTORAL part of the shore zone of a large body of water. Compare with riparian rights.

LOAN APPLICATION document required by a lender prior to issuing a loan commitment. The application generally includes the following information: I - name of the borrower 2. amount and terms of the loan 3. description of the subject property to be mortgaged 4. borrower's financial and employment data

LOAN APPLICATION FEE a charge required by a loan originator to be paid by the borrower to cover the credit report, property appraisal and other incidental expenses associated with underwriting the loan. The fee is generally not refundable.

LOAN COMMITMENT an agreement to lend money, generally of a specified amount, at specified terms at some time in the future.

LOAN CONSTANT same as mortgage constant

LOAN COVERAGE RATIO same as debt coverage ratio.

LOAN PACKAGE the collection of documents associated with a specific loan application.

LOAN-TO-VALUE RATIO (LTV) the portion of the amount borrowed compared to the cost or value of the property purchased.

LOCATION, LOCATION, LOCATION" the "three most important things about real estate"; a popular statement that emphasizes the importance of location with respect to the value of urban real estate.

LOCKED-IN INTEREST RATE the rate promised by a lender at the time of loan application. The promise is a legal commitment of the lender, though there may be qualifications or contingencies that allow the lender to charge a higher rate. On home loans, the lock-in is customarily provided for 1% of the amount borrowed, though often it is free-e of charge. On income property loans, a lock-in generally requires a commitment fee from the loan applicant.

LOG CABIN an early-American-style house of unfinished logs.

LONG-TERM CAPITAL GAIN for income tax purposes, the gain on a capital asset held long enough to qualify for special tax considerations. Note: The highest rate for individuals in 1991 and thereafter for long-term capital gains is 28%.

LONG-TERM FINANCING same as permanent mortgage.

LONG-TERM LEASE generally, a commercial lease of 5 years or longer, or a residential lease longer than I year.

LOT AND BLOCK a method of locating a parcel of land.

LOT LINE a line bounding a lot as described in a property survey.

LOW-BALL OFFER an offer from a prospective property buyer that is much lower than the listing price. Such an offer may indicate the buyerÕs belief that the property will not attract many good offers and the asking price is unrealistic

LOW-INCOME HOUSING (QUALIFIED) housing that is eligible for special tax credits of up to 9% of their cost (4% in certain situations) under the 1986 tax act - Strict rules must be followed concerning tenant qualification, certification, and project financing.

LTV loan-to-value ratio.

L/V loan-to-value ratio.