Land Contract
Sometimes the seller opts to begin the title transfer process only after the buyer has paid a specified portion of the purchase price. In such cases, a land contract specifies the terms and conditions of payment schedule, value and delivery (often used when property is sold on a small down payment). |
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Lease
A Lease is simply a written contract between the owner of real or personal property and a tenant, which outlines the terms and conditions regarding the use of the property and the term of the occupancy. |
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Legal Description
A written property description is formally recognized as being legally valid if it can sufficiently locate and identify the property without the need for any additional oral testimony. It must specify exact boundaries, and should include references to government surveys or officially recorded maps. |
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Lessee (Tenant)
The "lessee" is the formal legal term that refers to the person or persons holding rights of possession and use of property under terms of a lease. |
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Lessor (Landlord)
The "lessor" is the formal legal term that refers to the person or persons leasing property to a lessee. |
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Licensed Mortgage Broker
A firm or individual, licensed by the state, acts as a liaison and contract negotiator between borrowers and lenders (in exchange for a commission). A mortgage broker usually does not retain servicing rights to the loan, meaning that once the loan agreement has been processed and approved, the broker's involvement with any service issues involving the loan is concluded. |
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Lien
A legal claim by one party on the property of another is referred to as a "lien", and is usually caused by legal judgments, unpaid taxes, delinquent labor or material compensation, or some other unresolved monetary obligation. |
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Limited Partnership
A limited partnership consists of one or more general partners, each of whom are fully liable, and one or more limited partners, each of whom are liable only for the amount of his or her own investment in the business or endeavor. |
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Listing
A listing agreement is a formal employment contract between a seller and a licensed real estate broker. It is normally entered into for a specific period of time, and for the purpose of the broker providing services to find ready, willing and able persons to buy, rent or lease the property in question. The seller agrees to pay a predetermined compensation figure, and the broker is usually authorized to act as the exclusive agent of the seller with respect to the particular property. The broker is also usually authorized to perform services involving the property in question on behalf of the seller in a fiduciary capacity. |
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Loan
A loan is simply a specific sum of money temporarily granted to one party from another, with the expectation of predetermined scheduled repayment with interest. |
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Loan Commitment
As an incentive for securing the business of a mortgagor, a lender will often provide a written loan commitment, which is simply guarantee to provide a loan for a definitive amount on specific terms for a limited time period. |
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Loan Processing
The term "loan processing" refers to the system through which a potential mortgagor is evaluated for loan approval. Things like stated income, debt, savings, credit and other information/documentation provided by the applicant are examined and verified. Afterwards, calculations of debt-to-income ratio, loan-to-value ratio, applicant net worth, available cash reserves and other relevant factors are used to develop and assign an appropriate underwriting option for the loan. Consequently, the term "loan processing" may also refer to the system of formally characterizing a loan applicant's financial situation (and supporting documentation) in such a way that a practical underwriting opinion can be approved and assigned. |
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Loan Submission
The package of all relevant information and documentation regarding a loan application (including information and documentation concerning the property or properties in question) is referred to as the "loan submission", and is delivered to a prospective lender for review and consideration for the purpose of approving or rejecting a loan application. |
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Loan-To-Value Ratio
The loan-to-value ratio is a mathematical formula (expressed as a percentage) that illustrates the relationship between the amount of a mortgage loan and the appraised value of the property in question. |
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Lock-In
When an interest rate and/or points are fixed at a certain level (usually during the loan application process), the rate is said to be "locked-in". This is usually done for a limited period of time (typically 60 days), and may require a fee (or the eventual acceptance of a higher interest rate). |
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