LACHES
Delay or negligence in asserting one's legal rights.

LAND
The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

LAND CONTRACT
A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid. Also commonly called a conditional sales contract, installment sales contract or real property sales contract. (See REAL PROPERTY SALES CONTRACT for statutory definition.)

LAND AND IMPROVEMENT LOAN
A loan obtained by the builder/developer for the purchase of land and to cover expenses for subdividing.

LANDLORD
One who rents his or her property to another. The lessor under a lease.

LATE CHARGE
A charge assessed by a lender against a borrower failing to make loan installment payments when due.

LATER DATE ORDER
The commitment for an owner's title insurance policy issued by a title insurance company which covers the seller's title as of the date of the contract. When the sale closes, the purchaser orders the title company to record the deed to purchaser and bring down their examination to cover this later date so as to show purchaser as owner of the property.

LATERAL SUPPORT
The support which the soil of an adjoining owner gives to a neighbor's land.

LEASE
A contract between owner and tenant, setting forth conditions upon which tenant may occupy and use the property and the term of the occupancy. Sometimes used as an alternative to purchasing property outright, as a method of financing right to occupy and use real property.

LEASEHOLD ESTATE
A tenant's right to occupy real estate during the term of the lease. This is a personal property interest.

LEGAL DESCRIPTION
A land description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps.

LESSEE
One who contracts to rent, occupy, and use property under a lease agreement; a tenant.

LESSOR
An owner who enters into a lease agreement with a tenant; a landlord.

LEVEL-PAYMENT MORTGAGE
A loan on real estate that is paid off by making a series of equal (or nearly equal) regular payments. Part of the payment is usually interest on the loan and part of it reduces the amount of the unpaid principal balance of the loan. Also sometimes called an "amortized mortgage" or "installment mortgage".

LEVERAGE
The use of debt financing of an investment to maximize the return per dollar of equity invested.

LIEN
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation. Example: judgments, taxes, mortgages, deeds of trust, etc.

LIFE ESTATE
An estate or interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person.

LIFE OF LOAN CAP (CAP RATE)
With regard to an adjustable rate mortgage, a ceiling the note rate cannot exceed over the life of the loan.

LIMITATIONS, STATUTE OF
The commonly used identifying term for various statutes which require that a legal action be commenced within a prescribed time after the accrual of the right to seek legal relief.

LIMITED PARTNERSHIP
A partnership consisting of a general partner or partners and limited partners in which the general partners manage and control the business affairs of the partnership while limited partners are essentially investors taking no part in the management of the partnership and having no liability for the debts of the partnership in excess of their invested capital.

LINTEL
A horizontal board that supports the load over an opening such as a door or window.

LIQUIDATED DAMAGES
A sum agreed upon by the parties to be full damages if a certain event occurs.

LIQUIDATED DAMAGES CLAUSE
A clause in a contract by which the parties by agreement fix the damages in advance for a breach of the contract.

LIQUIDITY
Holdings in or the ability to convert assets to cash or its equivalent. The ease with which a person is able to pay maturing obligations.

LIS PENDENS
A notice filed or recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation; literally "suit pending"; usually recorded so as to give constructive notice of pending litigation.

LISTING
An employment contract between principal and agent authorizing the agent to perform services for the principal involving the latter's property; listing contracts are entered into for the purpose of securing persons to buy, lease, or rent property. Employment of an agent by a prospective purchaser or lessee to locate property for purchase or lease may be considered a listing.

LIVERY OF SEISIN (SEIZIN)
The appropriate ceremony at common law for transferring the possession of lands by a grantor to a grantee.

LOAN ADMINISTRATION
Also called loan servicing, Mortgage bankers not only originate loans, but also "service" them from origination to maturity of the loan through handling of loan payments, delinquencies, impounds, payoffs and releases.

LOAN APPLICATION
The loan application is a source of information on which the lender bases a decision to make the loan; defines the terms of the loan contract, gives the name of the borrower, place of employment, salary, bank accounts, and credit references, and describes the real estate that is to be mortgaged. It also stipulates the amount of loan being applied for and repayment terms.

LOAN CLOSING
When all conditions have been met, the loan officer authorizes the recording of the trust deed or mortgage. The disbursal procedure of funds is similar to the closing of a real estate sales escrow. The borrower can expect to receive less than the amount of the loan, as title, recording, service, and other fees may be withheld, or can expect to deposit the cost of these items into the loan escrow. This process is sometimes called "funding" the loan.

LOAN COMMITMENT
Lender's contractual commitment to make a loan based on the appraisal and underwriting.

LOAN-TO-VALUE RATI0
The percentage of a property's value that a lender can or may loan to a borrower. For example, if the ratio is 80% this means that a lender may loan 80% of the property's appraised value to a borrower.