Real Estate Glossary - Letter L

Land and improvement loan

a loan usually obtained for the purpose of using it to purchase and develop a land such as in subdivisions.

Land grant

a donation in the form of a land by any public entity to a private entity.

Land improvements

any physical changes made on a land to increase its market value and potential usage.

Land lease

any lease that only covers the ground.

Land use regulation

pertains to all codes and permits required by the local government to comply with building standards.

Landlord

also known as lessor in a lease agreement.

Landmark

any structure which establishes a boundary, usually placed between two adjoining parcels.

Late charge

a penalty imposed against a party who failed to meet due date.

Lease

a contractual agreement between lessor and lessee that contain the terms and conditions pertaining to the use of a property and payment for such usage.

Lease with an option to purchase

a provision in a lease contract in which the lessee has a contractual right to purchase the real property being leased as long as the lessee complies with the terms of the provision.

Lease-purchase agreement

an agreement between lessor and lessee whereby a portion of the lease payment is considered as a down payment for the leased property and after a specified time, lessor should pay a lump sum to formally purchase the leased property.

Legal age

the age in years when a person can be held legally responsible for fulfilling or not fulfilling any contractual obligations.

Legal capacity

the power or capacity of a person to enter any legal transaction.

Legal notice

the information required by law to be given.

Lessee

any party under a lease agreement who pays for the right to use a real property for a specified period of time; also known as tenant.

Lessor

a person who grants a lessee the right to use a real property; also known as owner or landlord.

Liability

any legal obligation or responsibility in which non-performance will render agreement as void.

Licensing examination

the examination required by the government for a person to have a professional credibility to perform a certain task.

Lien

a claim or encumbrance against a property which is used as a security for the discharge of an obligation or payment of a debt.

Life estate

a collection of all the properties of a living person for the person’s life.

Limited liability

any personal obligation that is restricted to the amount invested.

Listing

a contract wherein a property owner hires a licensed real estate broker to assist in selling or leasing the property.

Listing contract

a legal document that contains terms and conditions pertaining to the hiring of a real estate broker to perform real estate transactions including property sale or lease.

Loan maturity

the period of time when a loan will be due and payable.