L/V or LTV

Short form for " Loan-to-value ratio ".

LAND CONTRACT

See " Contract for Deed ".

LANDLOCKED

A term describing a property that does not border on any public road.

LATE CHARGE

The penalty a borrower must pay when a payment is made a stated number of days (usually 10-15) after the due date.

LEASE

A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may use the real estate for a specified period of time and the amount of rent to be paid.

LEASE WITH OPTION TO PURCHASE

A rental contract which allows the tenant to purchase the property during the period of the lease. Payments under the lease may be credited (in whole or in part) against the purchase price.

LEASE-PURCHASE MORTGAGE LOAN

A Fannie Mae loan which allows qualified persons to lease a property from a nonprofit organization with an option to purchase the home. Payments are made against the loan principal and interest but with a portion going into a savings account toward the purchase price.

LEASEHOLD ESTATE

A tenant's interest in or right to hold possession of a property.

LEGAL DESCRIPTION

A property description, recognized by law, using a Government Rectangular Survey , Metes and Bounds , or a Recorded Plat map to sufficiently locate and identify a property.

LEGAL NAME

Usually a person's full name as given at birth, may be changed by filing the proper forms and paying the appropriate fee.

LEGAL NOTICE

Informing one or more persons of a fact, action or intention in a period of time and in a fashion required by a statute, contract or court order.

LENDER'S FEES

Fees paid to the lender to cover costs associated with processing, underwriting and closing of the loan.

LESSEE

A tenant under a lease.

LESSOR

A landlord under a lease (the owner of the property being rented).

LETTER OF COMMITMENT

See " commitment Letter ".

LETTER OF CREDIT

An agreement between a bank and a borrower which allows the borrower to use money on the bank's credit.

LETTER OF INTENT

A written indication to the owner of property that the writer will be making an offer to purchase the property.

LEVY

To charge or assess a tax or charge.

LIABILITIES

A person's debts or financial obligations. Liabilities include long-term and short-term debt, as well as potential losses from legal claims.

LIABILITY INSURANCE

Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. See also homeowners insurance .

LIABLE

To be legally obligated or responsible for something or to someone.

LIBER

Latin for "book", the volume in which land records are held.

LIEN

A legal claim against a property that must be paid off when the property is sold. A lien is created when one borrows money to purchase or refinance a home loan or and with obtain a home equity loan.

LIEN HOLDER

The person who has the claim against the property.

LIEN WAIVER

The surrender or passing up on one's right to a claim.

LIFETIME RATE CAP

For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See Cap.

LINE/LOAN AMOUNT

The entire HELOC or Fixed Rate Second mortgage loan amount.

LINE OF CREDIT

An agreement by a lender to extend credit up to a certain amount for a certain time without the need for the borrower to file another application. See home equity line of credit.

LIQUID ASSET

A cash asset or an asset that is easily converted into cash.

LIS PENDENS

Latin meaning "suit pending", a recorded notice of a legal claim which may affect ownership of a parcel of land.

LIST

To place a property up for sale in the public forum, to add it to the list of properties for sale.

LISTING BROKER (AGENT)

The real estate professional who acts for the vendor in marketing a property for sale. As opposed to Selling Broker (Agent) -- the agent representing the purchaser.

LISTING

The agreement that allows a real estate professional to market a property or the actual notice of the property's availability and features.

LITIGATION

Legal action in pursuit or furtherance of a claim.

LOAN AMOUNT

A sum of borrowed money (principal) that is generally repaid over time with interest.

LOAN COMMITMENT

A lender's agreement to advance money on specified terms after specified conditions are met. See commitment letter.

LOAN ORIGINATION

The process by which a mortgage lender makes a home loan and records a mortgage against the borrower's real property as security for repayment of the loan.

LOAN-TO-VALUE (LTV) RATIO

The ratio of the total amount borrowed on a mortgage against a property compared to the appraised value of the property. For example, if one has an $80,000 1st mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%).

LOCK-IN

A written agreement in which the lender guarantees a specified loan program interest rate and points if a mortgage goes to closing within a set period of time.

LOCK-IN PERIOD

The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in.

LOT

A measured section of land, often a particular parcel of land on a Recorded Plat .

LOT LINE

The legal perimeter of a parcel of property, often shown on a survey of the property.

LOW-BALL OFFER

A slang term for an offer to purchase a property with an offered purchase price much lower than that asked for. An attempt to take advantage of pressures on the vendor to sell by asking him to accept much less than the property may be worth.