California License Real Estate Terms Glossary

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LACHES

Unreasonable delay in asserting one's legal rights.

LAND CONTRACT

A contract used in the sale of real property when the seller wishes to retain legal title until all or a certain part of the purchase price is paid by the buyer. It is also referred to as an installment sales contract or an agreement of sale.

LAND SALES CONTRACT

A contract for the sale of property, by which possession is delivered to the buyer, but title remains with the seller until full payment or the satisfaction of other stated conditions.

LANDLOCKED

Property totally surrounded by other property with no means of ingress or egress.

LANDLORD

The person who leases property; the owner of the property.

LANDS, TENEMENTS, AND HEREDITAMENT

Inheritable lands or interest.

LATE CHARGE

A charge made by a lender against a borrower who fails to make loan installments when due.

LATE SUPPORT

The support that the soil of an adjoining owner gives to his or her neighbor's land.

LATH

A building material of wood, metal gypsum, or insulating board fastened to the frame of a building to act as a plaster base.

LEASE

A contract between owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy.

LEASEHOLD ESTATE

The estate of a tenant under a lease. (See Estate for Years.)

LEGACY

A gift of money by will.

LEGAL DESCRIPTION

A description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps.

LENDER GUIDELINES

Most lenders use Fannie Mae and Freddie Mac underwriting guide lines.

LESSEE

A tenant; the person who is entitled to possession of property under a lease.

LESSOR

A landlord; the property owner who executes a lease.

LETTER OF INTENT

An expression of intent to invest, develop, or purchase without creating any firm legal obligation to do so.

LEVY

To execute upon; to seize and sell property to obtain money to satisfy a judgment.

LIABILITIES

Debts or claims that creditors have against assests.

LICENSE

Personal, nonassignable authorization to enter and perform certain acts on another's land.

LICENSEE

Under the law before 1968, which classified persons who entered upon others' land, a licensee was someone who entered upon land with the owner's express or implied permission for a business purpose.

LIEN

A lien makes the debtor's property security for the payment of a dept or the discharge of an obligation. A charge or claim against property as security for payment of a debt or obligation.

LIFE ESTATE

An estate in real property that continues for the life of a particular person. The "life" involved may be that of the owner or that of some other person. An estate in property whose duration is limited to and measured by the life of a natural person or persons.

LIGHT COLORS

Light colors make a room look larger.

LIMITED PARTNERSHIP

A partnership composed of some partners whose contribution and liability are limited. There must always be one or more general partners with unlimited liability and one or more limited partners with limited liability. A special partnership composed of limited and general partners. The general partners have unlimited liability and total management, whereas the limited partners have to voice in the management and their only financial exposure is to the extent of their investment. In some ways the limited partners' interest is similar to that of stockholders in a corporation.

LINTEL

A horizontal board that supports the load over an opening such as a door or window.

LIQUIDATED DAMAGES CLAUSE

An agreement between the parties that in the event of a breach, the amount of damages shall be liquidated (set or fixed). The amount is set before the breach, usually at the time of making the contract, on the assumption that the exact amount of damages is difficult to determine becasue of the nature of the contract.

LIS PENDENS

A notice of pending litigation recorded to give constructive notice of a suit that has been filed. A recorded notice that a lawsuit is pending, the outcome of which may affect title to property.

LISTING

An employment contract between a broker and his principal (client). A listing is automatically canceled upon the death of the agent (real estate broker) or the principal(owner). Another real estate broker must negotiate a new listing with the owner upon the death of the real estate broker.

LISTING AGREEMENT

An employment contract authorizing a broker to sell, lease, or exchange an owner's property.

LITIGATION

A civil lawsuit; a judicial controversy.

LOAN COMMITTEE

The committee in a lending institution that reviews and approves or disapproves the loan applications recommended by a loan officer.

LOAN CORRESPONDENT

A loan agent usually used by distant lenders to help the lender make real estate loans.

LOAN PACKAGE

A group of documents prepared along with a loan application to give the prospective lender complete details about the proposed loan.

LOAN TRUST FUND ACOUNT

(See Impound Account.)

LOAN VALUE

The lender's appraised value of the property.

LOUVER

An opening with a series of horizontal slats set at an angle to permit ventilation without admitting rain, sunlight, or vision.

LTV

These initials mean "loan to valueratio"

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