J-L Terms

Question 1

lateral support

Answer 1

The support a landowner has a duty to provide to the land of adjacent property owners.

Question 2

latitude

Answer 2

Latitude is referenced by lines parallel to the equator and is measured in degrees (°), minutes (‘) and seconds (“).

Question 3

lease

Answer 3

A tenancy agreement between landlord (lessor) and tenant (lessee).

Question 4

leasehold

Answer 4

A lease estate in realty; a nonfreehold or possessory interest only.

Question 5

legacy

Answer 5

A bequest of money by will.

Question 6

legal description

Answer 6

A description of real property by government survey; metes and bounds; or reference to a recorded lot, block, and tract.

Question 7

lessee

Answer 7

A tenant under a lease.

Question 8

lessor

Answer 8

A landlord who has given a lease.

Question 9

leverage

Answer 9

The use of other people’s money to make money. Purchasing real property with a minimum down payment is a use of leverage.

Question 10

LIBOR rate

Answer 10

London interbank offering rate used as index on adjustable-rate mortgages.

Question 11

license

Answer 11

A revocable privilege to use the land of another.

Question 12

lien theory

Answer 12

The theory in a majority of states that a mortgage is a lien and not a transfer of title. See title theory.

Question 13

lien

Answer 13

A monetary encumbrance that is secured by real estate.

Question 14

life estate

Answer 14

An estate in property for the life of a person that may not be inherited.

Question 15

like-for-like

Answer 15

An exchange of similar property that qualifies for a tax-deferred exchange; for example, real property for real property.

Question 16

limited common elements

Answer 16

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.

Question 17

limited liability company (LLC)

Answer 17

A business entity with limited liability that is taxed like a partnership. It avoids the restrictions of S corporations or limited partnerships.

Question 18

limited partnership

Answer 18

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.

Question 19

link

Answer 19

A surveyor’s measure equal to 7.92 inches.

Question 20

liquid

Answer 20

Cash or assets readily convertible to cash.

Question 21

liquidated damages

Answer 21

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.

Question 22

liquidity

Answer 22

Ability to turn assets into cash.

Question 23

lis pendens

Answer 23

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.

Question 24

listing

Answer 24

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.

Question 25

littoral property

Answer 25

Property located on the shore of a lake or an ocean.

Question 26

littoral rights

Answer 26

Rights of a property owner to reasonable use of lake, pond, or ocean water bordering the property. Also see riparian rights.

Question 27

livable floor space

Answer 27

The space measured by the interior of each room, excluding interior walls and closets.

Question 28

loan-to-value ratio (LTV)

Answer 28

The percentage of the value (or ratio) that a lender will lend against a property.

Question 29

lock-in clause

Answer 29

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.

Question 30

longitude

Answer 30

Longitude is measured in terms of north-south meridians, and is measured in degrees (‘), minutes (`) and seconds (“).

Question 31

lot, block, and tract system

Answer 31

Legal description based on reference to a recorded subdivision map.

Question 32

latent defect

Answer 32

A defect not apparent from a reasonable visual inspection.

Question 33

late charge

Answer 33

A charge imposed by a lender for late payments. Late charges are regulated by state law.

Question 34

landlocked

Answer 34

Property that has no access because of surrounding property and the absence of any easement.

Question 35

land residual method

Answer 35

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.

Question 36

land contract

Answer 36

A contract under which the seller keeps title while the buyer gets possession. Title passes when the propertyhasbeenfullypaidfor. Also called a contract for sale.

Question 37

laches

Answer 37

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.

Question 38

junior lien

Answer 38

A subordinate lien as determined by the time of recording or the nature of the lien.

Question 39

judgment

Answer 39

The final order of a court as to money owed. When recorded, the judgment becomes a general lien on the property of the debtor.

Question 40

joist

Answer 40

A horizontal board that supports a floor or ceiling.

Question 41

joint venture

Answer 41

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.

Question 42

joint tenancy

Answer 42

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.

Question 43

joint liability

Answer 43

The agreement that each party will be equally liable for an obligation.