Glossary L

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E-Store. The place that you can buy or sell business related items or services for a small ad fee.

LAISSEZ-FAIRE
Allow to act; non-interference by government in traded industry, and individual action
generally.
LAND CONTRACT
(SEE CONTRACT FOR DEED)
A financing technique wherein the seller agrees to deliver the deed at some future date and
the buyer takes possession while paying the agreed amount. (also, called land contract,
an installment sale contract, and an agreement for deed.)
LAND DESCRIPTION (LEGAL DESCRIPTION)
A definite and positive written identification of a specific parcel of land and its location
without additional oral testimony.
LAY MEMBER
One not belonging to or connected with a particular profession.
LEASE
An estate for years; an agreement that does not convey ownership but does not convey
possession and use for a period of time and for compensation.
LEASEHOLD
An estate in real property held under a lease arrangement for a definite number of years;
non freehold estate.
LESSEE
A tenant or lease holder; party given a lease.
LESSOR
The landlord or owner; party granting a lease.
LEVEL PAYMENT PLAN
A method for amortizing a mortgage whereby the borrower pays the same amount each
month.
LEVERAGE
The use of borrowed funds to finance the purchase of an asset; the use of another's
money to make more money.
LIABILITY
Debt; financial obligation; drawback.
LICENSE
A privilege granted by the state to operate as a real estate broker, broker-salesperson, or
salesperson; a type of time-share interest.
LICENSEE
An individual who has qualified for and been registered as a real estate broker,
broker-salesperson, or salesperson.
LICENSURE
Certification as a licensee; the granting by the state of a license to practice real estate.
LIEN
A claim or property for payment of some obligation or debt.
LIENEE
One whose property is subject to a claim or charge by another.
LIENER
One who has a claim or charge on the property of another.
LIEN THEORY
Legal concept that regards a mortgage as a just claim on a specific property pledged as
security for a mortgage debt.
LIFE ESTATE
A tenancy whose duration is limited to the life of some person; freehold estate.
LIMITED LIABILITY COMPANY (LLC)
An alternative, hybrid business entity with the combined characteristics and benefits of
both limited partnerships and S corporations.
LIMITED PARTNERSHIP
A business entity consisting of one or more limited partners.
LINEAL
Descended in a direct family line; relating to or derived from ancestors.
LIQUIDATED DAMAGES
The amount of liable consideration specified in a agreement as a penalty for default.
(See also damages.)
LIQUIDATION
The process of determining liabilities and appointing the assets in order to discharge the
indebtedness of a business to be sold.
LIQUIDITY
The ability to convert non cash assets into cash quickly; refers to a firm's cash position
and its ability to meet obligations.
LIS PENDENS
A pending legal action.
LISTING
Oral or written employment agreement between a broker (or a salesperson employed by
a broker) and the property owner; authorization to sell, rent, or exchange.
LITIGATION
A lawsuit; the act of carrying on a lawsuit; a case before the court of law.
LITTORAL
Legal rights related to land abutting an ocean , sea or lake, usually extending to the
high-water mark.
LOAN CORRESPONDENT
Generally, a mortgage banker or company that provides services for lending institutions.
LOAN TO VALUE (L/V) RATIO
Relationship between amount borrowed and appraised value (or sale price) of a property.
LOT and BLOCK NUMBERS
A type of legal description of land.