J-L Terms Flashcards
lateral support
The support a landowner has a duty to provide to the land of adjacent property owners.
latitude
Latitude is referenced by lines parallel to the equator and is measured in degrees (°), minutes (‘) and seconds (“).
lease
A tenancy agreement between landlord (lessor) and tenant (lessee).
leasehold
A lease estate in realty; a nonfreehold or possessory interest only.
legacy
A bequest of money by will.
legal description
A description of real property by government survey; metes and bounds; or reference to a recorded lot, block, and tract.
lessee
A tenant under a lease.
lessor
A landlord who has given a lease.
leverage
The use of other people’s money to make money. Purchasing real property with a minimum down payment is a use of leverage.
LIBOR rate
London interbank offering rate used as index on adjustable-rate mortgages.
license
A revocable privilege to use the land of another.
lien theory
The theory in a majority of states that a mortgage is a lien and not a transfer of title. See title theory.
lien
A monetary encumbrance that is secured by real estate.
life estate
An estate in property for the life of a person that may not be inherited.
like-for-like
An exchange of similar property that qualifies for a tax-deferred exchange; for example, real property for real property.
limited common elements
Areas in a common-interest subdivision owned in common with other owners, but designated for the exclusive use of particular owners, such as parking spaces or storage lockers.
limited liability company (LLC)
A business entity with limited liability that is taxed like a partnership. It avoids the restrictions of S corporations or limited partnerships.
limited partnership
A partnership in which one or more partners have liability limited only to the extent of their investments. Limited partners cannot be active in the business management.
link
A surveyor’s measure equal to 7.92 inches.
liquid
Cash or assets readily convertible to cash.
liquidated damages
Advance agreement as to the amount of damages for non- performance when exact damages may be difficult to ascertain. If so unreasonable that the court considers them a penalty, they will not be enforced.
liquidity
Ability to turn assets into cash.
lis pendens
A recorded notice of a pending lawsuit concerning a property. Though not a lien, lis pendens provides constructive notice that an action is pending against the property.
listing
An agency agreement between owner and broker wherein the owner authorizes the broker to attempt to find a buyer and agrees to pay a certain commission should the broker succeed.
littoral property
Property located on the shore of a lake or an ocean.
littoral rights
Rights of a property owner to reasonable use of lake, pond, or ocean water bordering the property. Also see riparian rights.
livable floor space
The space measured by the interior of each room, excluding interior walls and closets.
loan-to-value ratio (LTV)
The percentage of the value (or ratio) that a lender will lend against a property.
lock-in clause
A provision that allows prepayment, provided full interest is paid as if the loan had gone to maturity; the borrower is “locked in” as to interest.
longitude
Longitude is measured in terms of north-south meridians, and is measured in degrees (‘), minutes (`) and seconds (“).
lot, block, and tract system
Legal description based on reference to a recorded subdivision map.
latent defect
A defect not apparent from a reasonable visual inspection.
late charge
A charge imposed by a lender for late payments. Late charges are regulated by state law.
landlocked
Property that has no access because of surrounding property and the absence of any easement.
land residual method
A means to determine land value by deducting the value of the income attributable to the improvements alone from the value of the income of the property.
land contract
A contract under which the seller keeps title while the buyer gets possession. Title passes when the propertyhasbeenfullypaidfor. Also called a contract for sale.
laches
The doctrine that upholds the loss of the right to enforce an agreement or a restriction because the delay in bringing action worked to the detriment of the other party.
junior lien
A subordinate lien as determined by the time of recording or the nature of the lien.
judgment
The final order of a court as to money owed. When recorded, the judgment becomes a general lien on the property of the debtor.
joist
A horizontal board that supports a floor or ceiling.
joint venture
A partnership for a particular undertaking only. It differs from a standard partnership in that a sole joint venture partner cannot obligate the other joint venture partners.
joint tenancy
An undivided interest with the right of survivorship. Owners must take title at the same time, by the same instrument, with equal interests, and with equal rights of possession.
joint liability
The agreement that each party will be equally liable for an obligation.
