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Real Estate Insurance Terms - L A l B l C l D l E l F l G l H l I l J l K l L l M l N l O l P l Q l R l S l T l U l V l W l X l Y l Z LABOR - (1) Work as opposed to materials. (2) A land measure of 177 1/7 acres. Used in Mexico. LACHES - An unreasonable delay by a party making a claim or bringing an action, so that the rights of said party are waived. Laches are not controlled by a statute of limitations. LAISSEZ-FAIRE - Leave alone, let proceed. French expression made popular by Adam Smith, and used to describe a theory that free trade promotes a better business climate than government controls. LAMINATE - To cover or construct with thin layers of plies (laminae). LAND - A general term which includes the ground and those things of a permanent nature such as trees, crops, oil and minerals in the ground, unless specifically excepted. LANDING - (1) A place for loading and unloading people or cargo from a boat, train, etc. (2) A flat surface adjoining a staircase at the top, bottom or between flights. LANDLOCKED PARCEL - A parcel of land surrounded entirely by privately owned land, with no access to a public right of way (road). Condemnation for a limited access highway is a major cause of such parcels. LANDLORD - An owner of leased real estate. LANDLORD'S WARRANT - A warrant enabling a landlord to levy upon a tenant's personal property (furniture, etc.) and to sell this property at a public sale to collect delinquent rent. LANDMARK - Originally, a monument on a boundary line. Modernly, boundary lines are usually established by walls or fences and these are the landmarks. LANDOWNER'S ROYALTY - In oil and gas leases, the portion of the value of each barrel of oil which goes to the property owner. LAND-POOR - Being short of money because of owning an excess of property which does not produce income. LANDSCAPE - A picture of single view of inland scenery. In real estate terms, the surroundings of a structure which provide the setting for that structure. To landscape is to modify the natural setting. LANDSCAPE ARCHITECT - One who, as a profession, plans and designs landscaping. Colleges now offer a degree as a landscape architect. LAND-SERVICE ROAD - An access road between parcels of land and another public road or highway. LAND, TENEMENTS AND HEREDITAMENTS - Originally used to describe freehold estates only, it has come to mean the most technical and all-inclusive description of real estate. LAND USE MAP - A map given area, showing the different land used in the area. LAND USE PLANNING - The development of long range plans for the use of land in a given area, such as through zoning plans. LAND USE REGULATION - A general term encompassing any regulation of land, whether public (zoning) or private (restrictive covenants). LAP SIDING - A siding applied in a similar manner to clapboard siding, but utilizing longer boards, usually of better quality. LARGER PARCEL - A term used in eminent domain proceedings, signifying that the parcel taken is not a complete parcel but part of a "larger parcel"; the owner, therefore, is entitled to damages from the severance as well as the value of the parcel taken. Unity of ownership, use, and contiguity must be present, although federal courts and some states do not require contiguity where there is a strong unity of use. LATE CHARGE - A penalty for failure to pay an installment payment on time. Usually not allowed as interest for tax deductions. May or may not be included as usury. If not, the amount of late charge is either set by statute or must be "reasonable". LATENT DEFECT - A hidden or concealed defect. One which could not be discovered by inspection, using reasonable care. In legal descriptions, a latent defect may be corrected and a totally new description not necessary. LATERAL - Proceeding from, situated at, directed to or pertaining to a side. A line branching from a main line (such as sewer line) is called a lateral line. LATERAL SUPPORT - The right of a landowner to the natural support of his land by adjoining land. The adjoining owner has the duty not to change his land (such as lowering it) so as to cause this support to be weakened or removed. LATH - The support upon which wet plaster is spread. May be metal (usually a course wire screen) or a solid, cement-like substance (called rock lath). LATITUDE - North-South distance above a meridian as measured from the equator. LAVATORY - (1) A basin or sink for washing one's hands and face. (2) A room containing a sink and toilet. LAW DAY - (1) The day (date) in a note, mortgage, etc., when the debt is to be paid. (2) A holiday honoring the law and legal profession. LAYOUT - (1) The arrangement or plan of any given area, such as rooms within a structure. (2) The plans (drawings) showing the arrangement of a given area. LEACHING - Removal of liquid waste material from sewage by filtration through sand, gravel, tiles, stones, etc. LEACHING
TRENCHES - Ducts, either dug in ground having filtration qualities
(gravel, sand, etc.), or in which filtration materials are placed
to remove the liquid waste from sewage. LEAN-TO - (1) A shed, abutting the wall of another structure, with three walls and a sloping roof. (2) A free standing structure of three walls and a sloping roof, the open side of which is sheltered from the prevailing winds. Used as a camping shelter. LEASE - An agreement by which an owner of real property (lessor) gives the right of possession to another (lessee), for a specified period of time (term) and for a specified consideration (rent). LEASEHOLD IMPROVEMENTS - Improvements made by the lessee. The term is used in condemnation proceedings to determine the portion of the award to which the lessee is entitled. LEASEHOLD INTEREST - The interest which the lessee has in the value of the lease itself in condemnation award determination. The difference between the total remaining rent under the lease, and the rent lessee would currently pay for similar space for the same time period. LEASEHOLD VALUE - The value of a leasehold interest. Usually applies to a long term lease when market rental for similar space is higher than rent paid under the lease. Some states allow the lessee to claim the leasehold value against the landlord in eminent domain proceedings, unless specifically prohibited by the lease itself. Other states, by statute, do not allow for such a claim. LEASE WITH OPTION TO PURCHASE - A lease under which the lessee has the right to purchase the property. The price and terms of the purchase must be set forth for the option to be valid. The option may run for the length of the lease or only for a portion of the lease period. LEAVES - The panel-like parts of a door, window, table top, etc., which may be removed or moved to a different position by sliding or by hinge attachments. LEGAL DESCRIPTION - A method of geographically identifying a parcel of land which is acceptable in a court of law. LEGAL NAME - First and last name. Middle name included, omitted or incorrect will not matter. Today full names (for identification purposes) are required in many instances, but only for identification purposes (to distinguish between two men named John Smith, for example). LEGAL NOTICE - The notice required by law in a particular case. May be actual notice, constructive notice, etc. LEGAL OWNER - The term has come to be used as a technical difference from the equitable owner, and not as opposed to an illegal owner. The legal owner has title to the property, although the title may actually carry no rights to the property other than a lien. LEGAL
RATE OF INTEREST - A rate of interest established by law,
rather than by agreement (contract). LEGATEE - (1) One who receives personal property by will. (2) One receiving any property by will, real or personal. LENDER - Any person or entity advancing funds which are to be repaid. A general term encompassing all mortgagees and beneficiaries under deeds of trust. LESSEE - The party to whom a lease (the right to possession) is given in return for a consideration (rent). LESSEE'S INTEREST - In appraising the value of a lessee's interest to determine the value of a potential sublease of assignment (sale) of the lease, the value is the market value of the property, less the interest of the lessor. The lessor's interest would be largely determined by the ration of the return on the lease to the market value without the lease. LESSOR - The party (usually the owner) who gives the lease (right to possession) in return for a consideration (rent). LESSOR'S INTEREST - The present value of the future income under the lease plus the present value of the property after the lease expires (reversion). LETTER OR ATTORNMENT - A letter from a grantor to a tenant, stating that the property has been sold and directing rent to be paid to the grantee (new owner). LETTER OF INTENT - A formal method of stating that a prospective developer, buyer, or lessee, is interested in property. Not an offer and creates not obligation. However, a builder who wants to build an office building, for example, may influence a lender by showing letters of intent from major prospective tenants. LEVEE - An embankment constructed along a river or stream to prevent flooding. LEVERAGE - The use of financing to allow a small amount of cash to purchase a large property investment. LEVY - A collection, seizure, assessment, etc., such as to levy (assess and collect) taxes. LIABILITY - A general term encompassing all types of debts and obligations. LIEN - An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens. LIFE - The length of time an improvement will last, either in relation to its physical utility or as an accounting procedure. LIFE ESTATE - An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party (remainderman). LIFE INTEREST - An interest in real estate for a period of the life of the one having the interest or the life of another. LIFE TENANT - One who holds land for the length of his or another's life. LIGHT AND AIR EASEMENT - An easement restricting the servient tenement from obstructing the light and air (usually the view) of the dominant tenement. For example: A developer builds a resort hotel. He may wish to obtain a light and air easement from adjoining owners so that they may not build tall structures and block the sun from the hotel's swimming pool. LIGHTER - A flat bottomed boat or barge used to unload ships not at a quay and for transporting goods within the harbor. LIKE IN KIND PROPERTY - A tax term used in exchanges. Property may be exchanged for like in kind property and the tax postponed. The term does not refer to the physical similarity of the properties but the purpose and intent (investment) of the taxpayer. LIME - A white powder, formed by burning limestone, used in making bricks, mortar, plaster and similar materials and for treatment of sewage, soil, etc. LIMITATION OF ACTION - The time in which a law suit may be begun before it is barred by statute. LIMITED ACCESS HIGHWAY - A highway with access only at spaced intervals, usually by the use of ramps. Abutting property occupants have no access other than at the regular stated intervals. LIMITED PARTNERSHIP - Used in many real estate syndications; a partnership consisting of one or more general partners who conduct the business and are responsible (liable) for losses, and one or more special (limited) partners, contributing capital and liable only up to the amount contributed. LINE FENCE - A fence erected along the property lines of a ranch or farm. LINE OF CREDIT - An amount of money a borrower may obtain from a bank without a special credit check. The money is generally for business purposes and the amount would not include the borrower's own home loan and other personal secured loans. LINTEL - A horizontal member spanning above an opening, such as a doorway, and usually bearing the load above it. LIQUID ASSETS - Cash or assets immediately convertible to cash. LIQUIDATION PRICE - A price paid for property sold to liquidate a debt. Usually less than market value since there is pressure to sell or a forced sale, either of which does not often bring the highest price. LIS PENDENS - A legal notice recorded to who pending litigation relating to real property, and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation. LISTING - An agreement between an owner of real property and a real estate agent, whereby the agent agrees to secure a buyer or tenant for specific property at a certain price and terms in return for a fee or commission. LIVABILITY - Minimum standards set by local government for the quality of residential structures (especially rental units). LIVE - Having force or containing energy such as a live volcano (one capable of eruption), live wire (one carrying electric current), etc. LIVE LOAD - (1) Variable weight in a building, such as furniture and people, as opposed to the fixed weight of the building itself (dead load); (2) The weight of cargo in a truck which is taxed by weight; (3) The weight of traffic over a bridge. LIVING TRUST - A trust which is in effect during the life of the settler, rather than upon his death (testamentary trust). LOAD - (1) A weight carried or supported by something, such as supported by "load-bearing" members of a building, or the weight carried in a ship, truck, etc. The power of an electrical charge. LOAD BEARING - Supporting weight in addition to its own vertically, or supporting pressure laterally. LOAN ORIGINATION FEE - A one time set up fee charged by the lender. LOAN PACKAGE - The file of all items necessary for the lender to decide to give or not give a loan. These items would include the information on the prospective borrower (loan application, credit report, financial statement, employment letter, etc.), and information on the property (appraisal, survey etc.). There may be a charge for "packaging the loan". LOAN POLICY - A title insurance policy insuring a mortgagee or beneficiary under a deed of trust against loss caused by invalid title in the borrower or loss of priority of the mortgage or deed of trust. LOAN RATIO - The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage the greater the interest charged. Maximum percentages for banks, savings and loans, or government insured loans, is set by statute. LOBBY - An open area immediately inside a building entrance. Most commonly associated with hotels and theaters. LOCAL GOVERNMENT - City, county or other governing body at a level smaller than a state. Local government has the greatest control over real property. LOCATION - The geographical position of real property in relation to its intended use. It is impossible to have a good or bad location without knowing the intended use. LOCK-IN - The prohibition of prepayment of a loan secured by a mortgage or deed of trust, so that the borrower is "locked in" to the loan for a specified period. LOFT BUILDING - A building containing an attic-like upper floor, usually open (without partitions). LONGITUDE - The East-West circle around the Earth, measured in relation to the meridian or latitude (North-South circle). It is measured from Greenwich Meridian. LONG-LIFE PARTS - The most permanent parts of a structure, such as the foundation or bearing walls, as opposed to hot water heaters, roofs, etc. LONG TERM LEASE - A general term which may refer to a lease 10 years or longer in term, or, in some areas, 5 years or longer. LOSS
OF ACCESS - Taking away the right of an owner of property
abutting a public road to come and go to and from said road and
his property. Usually happens in condemnation when the abutting
road becomes a limited access highway. LOT - Generally, any portion or parcel of real property. Usually refers to a portion of a subdivision. LOUVER - Affixed or adjustable formation of slats in a wall, ceiling, door, etc. to let in light and air, allow ventilation of fumes from within, yet keep out rain. LOW WATER LINE - Line on the shore marking the lowest ebb of the tide. LUMINOUS CEILING - A ceiling emitting light from its entire surface, through the use of fluorescent light above translucent glass or plastic. |