# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Land	The surface of the earth extending down to the center and upward to the sky, including all natural things thereon such as trees, crops, or water; plus the minerals below the surface and the air rights above.
Land Contract	Another name for an installment purchase contract, by which the buyer obtains equitable title (the right to use the property) while the seller retains legal title (recorded title)as security for payment of the balance of the purchase price.
Land Description	A description of a particular piece of real property.
Land Leaseback	A creative financing device often used with raw land which a developer wants to improve, in which the developer sells the land to an investor who leases the land back to the developer under a long-term net lease and subordinates his fee ownership to the lender providing development financing.
Land Trust	An association organized by common owners of real property, which holds title to the real property in the name of one or more trustees for the benefit of the owners, whose beneficial interests may be represented by trust certificates.
Land, Tenements and Hereditaments	A feudal phrase used to describe all types of immovable realty including the land, buildings and all appurtenant rights thereto.
Landlocked	Real property having no access to a public road or way.
Landlord	The lessor or the owner of leased premises. The landlord retains a reversion interest in the property so that when the lease ends the property will revert to the landlord.
Landlord?s Lien	A type of lien that can be created by contract or by operation of law. Some examples are: (1) a contractual landlord’s lien as might be found in a lease agreement; (2) a statutory landlord’s lien; and (3) landlord’s remedy of distress (or right of distraint), which in not truly a lien but has a similar effect. See also "Lien".
Landmark	A stake, stream, cliff, monument or other object or feature which is used to fix or define land boundaries; also a prominent feature of a landscape or property that is the symbol for the place.
Landscaping	Shrubs, bushes, trees and the like, on the grounds surrounding a structure.
Lateral and Subjacent Support	The support received by a parcel of real property from the land adjoining it is called lateral support. Subjacent support is that support which the surface of the earth receives from its underlying strata.
Law Day	The date an obligation becomes due; sometimes refers to the closing date.
Lease	The formal legal document entered into between a Landlord and a Tenant to reflect the terms of the negotiations between them; that is, the lease terms have been negotiated and agreed upon, and the agreement has been reduced to writing. It constitutes the entire agreement between the parties and sets forth their basic legal rights.
Lease Commencement Date	The date usually constitutes the commencement of the term of the Lease for all purposes, whether or not the tenant has actually taken possession so long as beneficial occupancy is possible. In reality, there could be other agreements, such as an Early Occupancy Agreement, which have an impact on this strict definition.
Leasehold	The estate or interest a tenant has as stated in the tenant's lease.
Leasehold Improvements	Improvements made to the leased premises by or for a tenant. Generally, especially in new space, part of the negotiations will include in some detail the improvements to be made in the leased premises by Landlord. See also “Tenant Improvements”.
Legal Description	A geographical description identifying a parcel of land by government survey, metes and bounds, or lot numbers of a recorded plat including a description of any portion thereof that is subject to an easement or reservation.
Legal Notice	That notice which is either implied or required by law. Constructive notice under the recording laws is also referred to as legal notice.
Legal Owner	The term is in technical contrast to equitable owner. The legal owner has title to the property, although the title may actually carry no rights to the property other than as a lien. See also “Lien”.
Legal Rate of Interest	The maximum interest rate permitted bylaw, with anything above that rate being usury.
Lessee	The person to whom property is rented or leased; called a "tenant" in most residential leases.
Lessor	The person who rents or leases property to another. In residential leasing, the lessor is often referred to as a landlord.
Less-than-Freehold Estate	An estate held by one who rents or leases property. This classification includes an estate for years, periodic tenancy, estate at will, and estate at sufferance.
Letter of Attornment	A letter from the grantor to a tenant, stating that a property has been sold, and directing rent to be paid to the grantee (buyer). See also “Attorn”.
Letter of Credit	A commitment by a bank or other person, made at the request of a customer, that the issuer will honor drafts or other demands for payment upon full compliance with the conditions specified in the letter of credit. Letters of credit are often used in place of cash deposited with the landlord in satisfying the security deposit provisions of a lease.
Letter of Intent (LOI)	A preliminary agreement stating the proposed terms for a final contract. They can be "binding" or "non-binding". This is the threshold issue in most litigation concerning letters of intent. The parties should always consult their respective legal counsel before signing any Letter of Intent.
Level Payment Mortgage	A mortgage which is scheduled to be repaid in equal periodic payments which include both principal and interest.
Leverage	The use of borrowed funds to purchase investment property with the anticipation that the property acquired will increase in return so that the investor will realize a profit not only on his own investment, but also on the borrowed funds; the employment of a smaller investment to generate a larger rate of return through borrowing.
Licensee	A person who has a valid license. A real estate licensee can be a salesperson or a broker, active or inactive, an individual, a corporation, or a partnership.
Lien	A claim or encumbrance against property used to secure a debt, charge or the performance of some act. Includes liens acquired by contract or by operation of law. Note that all liens are encumbrances but all encumbrances are not liens.
Lien Waiver (Waiver of Liens)	A waiver of mechanic’s lien rights, signed by a general contractor and his subcontractors, that is often required before the general contractor can receive a draw under the payment provisions of a construction contract. May also be required before the owner can receive a draw on a construction loan.
Life Estate	Any estate in real or personal property which is limited in duration to the life of its owner or the life of some other designated person.
Like-Kind Property	A term used in an exchange of property held for productive use in a trade or business or for investment. Unless cash is received, the tax consequences of the exchange are postponed pursuant to Section 1031 of the Internal Revenue Code.
Limited Common Elements	That special class of common elements in a condominium reserved for the use of a certain apartment(s) to the exclusion of other apartments.
Limited Partnership	A type of partnership, created under state law, comprised of one or more general partners who manage the business and who are personally liable for partnership debts, and one or more special or limited partners who contribute capital and share in profits but who take no part in running the business and incur no liability over and above the amount contributed. See also "General Partner".
Line of Credit	A maximum amount of money a bank will lend one of its more reliable and credit worthy customers without need for any formal loan submission.
Liquidated Damages	An amount predetermined by the parties to an agreement as the total amount of compensation an injured party should receive in the event the other party breaches a specified part of the contract.
Liquidity	The ability to sell an asset and convert it into cash at a price close to its true value.
Lis Pendens	A legal document recorded in the Bureau of Conveyances, which gives constructive notice that an action has been filed in either a state or federal court affecting a particular piece of property. "Lis Pendens" is a Latin term which means "action pending" and is in the nature of a quasi-lien.
Listing Agreement	An employment contract between principal and agent that authorizes the agent (such as a broker) to perform services for the principal and his property.
Littoral Land	Land bordering on the shore of a sea or ocean and thus affected by the tide currents.
Load Factor	That portion of the building which is shared by all tenants (i.e. restrooms, enclosed stairwells) or is within the physical structure (i.e. columns) but can't be accessed by Tenants. Typical load factors are 6% to 13%. If a space is 1,000 square feet with a 13% load factor, it means the building is only 87% efficient. In real terms, that means a 1,000 rentable square feet with zero load factor is 13% cheaper than the 13% load factored 1,000 rentable square foot space.
Loan Commitment	A commitment by a lender of the amount he will loan to a qualified borrower on a particular piece of real estate for a specified amount of time under specific terms.
Loan-to-Value Ratio (LTV)	The ratio that the amount of the loan bears to the appraised value of the property or the sales price, whichever is lower.
Locus Sigilli	Latin for "under seal", used in the abbreviated form, "L.S." at the end of signature line in some formal legal documents; used instead of the actual seal.
Long Term Lease	In most markets, this refers to a lease whose term is at least three years from initial signing until the date of expiration or renewal option.
Loss Factor	What percentage of the gross area of a space is lost due to walls, elevator, etc. Rule of thumb in Manhattan is approximately 15%.
Loss Payee	The person designated on an insurance policy to be paid in case the insured property is damaged or destroyed.
Lot	Generally, one of several contiguous parcels of land making up a fractional part or subdivision of a block, the boundaries of which are shown on recorded maps and “plats”.
Low Rise	A building with fewer than 4 stories above ground level.
Lump-Sum Contract	A type of construction contract requiring the general contractor to complete a building or project for a fixed cost normally established by competitive bidding. The contractor absorbs any loss or retains any profit.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z