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Property and real estate glossary

There are 150 entries in this glossary.
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L

Term Definition
LALLY COLUMN

A concrete filled steel pipe used to support beams.

LATE CHARGE

An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.

LATENT DEFECTS

Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LEASE

A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASE OPTION

A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEASEHOLD ESTATE

A type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEGAL DESCRIPTION

The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.

LENDER

The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES

A person's outstanding debt obligations.

LIABILITY INSURANCE

Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.

LIEN

Any claim against a piece of property resulting from a debt or other obligation.

LIFE CAP

A limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LINE OF CREDIT

An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.

LIQUID ASSET

Any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN

Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.

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