Landscape

A property´s landscape is all of a home's exterior surroundings.  A landscape can be simple, as a simple grass lawn or gravel yard, or much more complex, such as a native-plant xeriscape. Simple landscapes are relatively easy to maintain, and may require merely mowing of grass or raking of leaves.  A homeowner with a more complicated landscape may choose to hire professional assistance for the maintenance and upkeep of his or her landscape.  Landscape is a major component of curb appeal.  Prospective home buyers are more likely to stop to look at the interior of a home whose exterior elements are well-maintained than a home with an unkempt landscape.

Landscape architect

A landscape architect is a professional who holds an educational credential in landscape architecture.  A landscape architect may have a bachelor´s degree or a master´s degree in landscape architecture, which involves education and training in horticulture, landscape design, and planning.  Landscape architects work in much the way home architects do, planning a home´s landscape and drawing up blueprints for it, like a home architect does for a physical dwelling.  Professional landscape architects are an investment, and can be expensive, but employing such a professional ensures that a property will be aesthetically attractive and that the landscape will be organized in such a way as to maximize the life, growth, and heartiness of vegetation thereon.

Landscape contractor

A landscape contractor is a professional who carries out the plans of a landscape architect or a landscape designer.  Like a building contractor, a landscape contractor is responsible for the general oversight of a project, the landscape of a parcel of real property, including ensuring that the blueprints for the landscape are adhered to with accuracy, making sure that work is completed on a timely basis in accordance with the budget allocated for the landscaping, and hiring and overseeing all subcontractors responsible for the various aspects of a landscaping project.  Landscape contractors´ fees vary depending upon the complexity of the project, the time and materials required, and the geographical location.

Landscape designer

A landscape designer is a professional, similar to a landscape architect, who has training in horticulture and landscape planning.  However, a landscape designer, unlike a landscape architect, does not necessarily hold a degree in the field.  Often, a landscape designer has only hands-on experience in landscape planning and design.  Landscape designers are often less expensive to employ than landscape architects, because they do not have the same certifications and educational credentials; however, a landscape designer can be as experienced as a landscape architect and may be a good choice for homeowners who desire a professionally-designed landscape but have limited financial resources.

Late charge

A late charge is a fee that a lending institution imposes on a borrower when the borrower does not make a loan payment on time.  Some lenders allow borrowers a grace period, often a few days to a week, during which no late charge is applied so long as the payment due is paid in full during that time; other lenders immediately institute a late charge.  The contract for a loan between the lender and the borrower specifies when each installment payment must be made by the borrower, the method by which the payment must be made, the date each payment is due, and the amount of time following the due date at which late charges begin to accrue, as well as the applicable amount of a late charge.

Late payment

A late payment is a payment that a lending institution receives from a borrower after the borrower´s payment due date has passed.  Pursuant to a lending agreement between the borrower and the lender, the borrower may be charged a late charge, or a fee for not paying his or her installment payment by the required date.  The late payment made by the borrower in such a situation includes the late charge that has been applied to the payment, as well as the full amount of the payment originally due.  Late payments may increase over time if a borrower pays consistently after his or her due date.

Latent defect

A latent defect is an invisible problem with a piece of real property that is, because it is not patent, not readily discoverable by a prospective home buyer or a professional home inspector conducting a home inspection on behalf of the buyer.  Examples of latent defects include problems such as bad wiring, termite damage, or lead paint.  In most jurisdictions, a seller of real property is required to disclose to potential buyers of the property any latent defects known to him or her.  This type of disclosure requirement is intended to protect a buyer from future problems that may occur subsequent to his or her purchase of the property.

Lead

Lead is a metallic chemical element that is sometimes present in older dwellings.  It is primarily found in the form of lead-based paint and lead plumbing that were commonly used in houses prior to the discovery that lead w\could be hazardous to human health. Exposure to lead was found to be a potentially serious health risk and laws changed to prohibit its use in home paint and plumbing in 1978.  Sellers of homes that were built prior to 1978 are generally required to sign a lead-based paint disclosure document that states that, to the best of their knowledge, there is no dangerous lead paint in the house.

Lease

A lease is a binding legal agreement that contains the terms and conditions of a renter's occupancy.  A lease is signed by a renter and the owner of the property, the landlord, and its terms are binding upon the parties and can be enforced in a court of law.  The terms of a lease usually include conditions regarding who may live on the property, how long they are entitled to occupancy, what rules they must abide by while in occupancy of the property, the amount and frequency of rental payments, and any late charges or other punishments associated with late payment or default.  A lease also specifies the duties of the owner who leases the property, such as maintenance and repairs on the property.

Lease option

A lease option is a provision in a lease agreement that specifies the right of the tenant/lessee to purchase the property for a specific price within a certain time frame.  A lease option in a contract allows the renter to pay rent for the specified time and occupy the property, and permits him or her to ultimately buy the property from the owner/landlord.  Lease options are often taken advantage of by people who desire to purchase a property but have insufficient financial resources to do so at the time when they begin a lease term.  Sellers of real property can benefit from a lease option because a renter in such a situation has an incentive to take good care of the property.

Leasehold estate

A leasehold estate is an arrangement in which a borrower of a loan does not own a specific piece of real property, but rather possesses a long-term lease thereto.  A leasehold estate is usually one of three types: a fixed-term tenancy, a periodic tenancy, or an at-will tenancy.  A fixed-term tenancy requires the holder of the leasehold estate to pay rent in installments for the use of the property for a specific period of time.  In a periodic tenancy, payments are made and the property is used by the leasehold estate holder in periods of time, such as week-to-week or month-to-month.  An at-will tenancy is a leasehold estate in which the owner of the property can terminate the tenancy at any time for any reason as long as he or she gives the tenant reasonable notice of termination.

Legal blemish

A legal blemish is a blemish on a piece of real property that is the result of the property´s violation of a law or regulation.  Examples of legal blemishes include issues such as zoning violations or fraudulent title claims associated with the property.  A legal blemish is likely to be problematic or a property owner in attempting to sell his or her property, particularly if the blemish adversely affects the clarity of the title to the property that can be transferred to a buyer.  Sellers are usually required to disclose any legal blemishes associated with their property; buyers may be wary of purchasing a property that has a legal blemish associated with it.

Legal description

A legal description is a specific way of identifying and locating a piece of real estate that is acceptable to a court.  Legal descriptions are commonly used in formal real estate documents, such as contracts for the sale of real estate and option agreements.  A legal description may range from a very few lines to a much longer detailed description of a property that has unusual boundaries or that is a large property with small sections within excluded from the title.  Legal descriptions normally include identifying information such as the lot, plat, and/or parcel number of the property and the city or county in which it is located.

Lender

A lender is any bank, savings institution, or mortgage company that offers home loans.  Lenders take applications submitted by potential home buyers and evaluate them to determine whether or not a particular applicant´s credit worthiness is sufficient to warrant the issuance of a home loan.  The lender makes its money by charging an interest rate on the loan, which the borrower is required to pay in addition to repayment of the principal of the loan.  The interest rate will vary from lender to lender, and will depend on a borrower´s credit history, the down payment, the total loan amount, and other factors.

Letter of intent

A letter of intent is a formal statement indicating that a buyer of a parcel of real estate intends to purchase the property for a certain price on a certain date.  The letter of intent is provided to the property seller to indicate to him or her that the buyer is seriously interested in purchasing the property, but the letter is in no way binding upon the buyer-the buyer can change his or her mind without legal ramifications.  Nevertheless, a letter of intent is a first step in negotiating the real estate transaction.  The letter of intent usually includes information regarding the price of the property, a proposed closing date, and basic financing conditions

Leverage

Leverage is the use of a small amount of cash, commonly in the form of a down payment, which is used to buy a parcel of real property.  A down payment is usually between 5 percent and 10 percent of the full purchase price of the property.  Leverage allows a buyer to secure his or her interest in a particular property when he or she cannot afford to pay the full purchase price at the outset.  Leverage is insurance for the seller of the property against the possibility that the buyer cannot or will not ultimately purchase the property because it indicates the buyer´s willingness to invest in the purchase.

Liabilities

Liabilities are any of a loan borrower's debts and financial obligations.  Liabilities may include things such as a home mortgage and any junior mortgages, any loans issued for the purpose of any other property, and debts such as credit card or educational debts or taxes due.  Liabilities of an individual are evaluated by a lending institution when considering whether or not the loan applicant has a sufficient credit worthiness to justify issuing a loan to him or her.  A person´s net worth s the balance between his or her assets and liabilities.

Liability insurance

Liability insurance is a type of insurance policy that protects owners of real property against any claims of negligence, personal injury, or property damage.  When a person or his or her property is damaged in some way while on a home owner´s property, that person may bring a lawsuit against the property owner to recover for injuries or damages suffered.  Liability insurance coverage pays for that damage, up to the point specified in the particular insurance contract, and may in addition cover, for example, attorney and court costs associated with defending against such a claim.

Lien

A lien is a claim that is laid by one person or company on the property of another as security for money owed.  A lien ensures that the holder of the security-that is, the creditor to whom the borrower owes money-will be repaid for his or her loan; in the event that the borrower defaults on the loan, a lien on the borrower´s property allows the lender to claim the property and sell it, using any proceeds recovered from such sale to pay off all or part of the outstanding balance of the loan.  Any remaining proceeds after the loan is satisfied in full are typically returned to the borrower.

Life cap

A life cap is a limit on the amount by which the interest rate associated with a loan can change during the term of the mortgage.  An adjustable-rate mortgage usually operates so that the interest rate associated with the loan is lower near the beginning of the term of the loan and gradually increases over the course of the loan term.  A life cap is the maximum interest rate to which the rate can increase over the life of the adjustable-rate mortgage.  For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fixed-rate mortgages soar to 20 percent.

Life-cycle cost analysis

A life-cycle cost analysis is an analysis of the total anticipated costs associated with a building project, including operating, maintenance, and replacement costs.  The life-cycle cost analysis for a particular construction project is typically calculated by an architect.  This type of analysis can be helpful to home buyers in budgeting for the costs required to accomplish the construction of their home, and serves as an accounting tool to ensure that all expenses are accounted for.  A life-cycle cost analysis may also reveal specific expenses that a home owner can potentially deduct on his or her income tax return.

Limited partnership

A limited partnership is a type of real property ownership with two or more partners, of whom one, referred to as the general partner, carries a greater portion of the responsibility for the ownership.  Real estate syndicates and other investment groups use this type of ownership.  In a limited partnership, the general partner makes the majority of the investment decisions on behalf of the group and oversees any investment.  In addition, the general partner is held principally liable for any losses that affect the partnership and the individual partners.

Lintel

A lintel is a horizontal piece of material that is located over a door or window.  A lintel is used for support, carrying the weight of the structure above it, such as masonry detail located above the window or door.  Common materials used for lintels include wood, stone, steel, reinforced concrete (concrete that is reinforced by bars of fibers for additional strength), or pre-tensioned concrete (concrete that is cast around already tensioned tendons for additional strength).  Lintels are also used on fireplaces, spanning the opening of the firebox, and may be decorative as well as functional, often in an arched shape.

Liquid assets

Liquid assets are a person´s cash and any other assets owned by that person that can be converted to cash relatively quickly.  Liquid assets can include, for example, money in savings and checking accounts, money in money-market accounts, and most certificates of deposit.  Assets are generally considered liquid if there are willing buyers and sellers available for their purchase and sale at all times.  The main characteristics of a liquid asset are that it can be sold rapidly, without expenditure on advertising costs, at a very low cost of transaction, and will be in demand for purchase anywhere. 

Liquidated damages

Liquidated damages are a type of remuneration that is available to a party to a contract to compensate him or her for any losses suffered by another party´s breach of the contract.  In the real estate context, liquidated damages may be required to be paid to a party when a real estate deal goes awry.  The payment is intended to alleviate the losses suffered by the injured party in relying on the contract and on the assumption that the other party would follow through with their obligations.  For example, if a buyer who has committed to a purchase of a seller´s property in a written, legally binding contract changes his or her mind, he or she may be required to pay liquidated damages to the seller in the amount of loss suffered by the seller in not having the real estate transaction close.

Listing

A listing is a piece of real property that is placed on the market, or "listed," by a real estate agent called a listing agent.  A listing is usually marketed or advertised by the listing agent in order to maximize the number of potential buyers who visit the property to consider it for purchase.  Information that is disseminated about a particular listing may include the age and condition of the property, the location, any associated amenities such as proximity to medical centers or renowned school districts, the size of the property, any amenities associated with the property itself such as recent upgrades or special features, and the asking price of the listing.

Listing inventories

A listing inventory is a database of the known number of houses for sale within a given market.  Listing inventories vary in the type of information they provide, but may include information regarding property size, price, age, and specifics like the number and size of individual rooms and any upgrades or amenities associated with the property.   A listing inventory is a useful tool for potential home buyers to evaluate how one property compares in various characteristics to others in the area.  A seller of a property may use a listing inventory in order to help determine an appropriate asking price for the property he or she offers for sale.

Live-in partnership

A live-in partnership is an arrangement in which two unrelated people purchase a home together.  Live-in partnerships may involve, for example, unmarried couples, friends, acquaintances, or simply roommates.  Each partner in a live-in partnership has a certain percentage of ownership in the property, depending upon his or her contribution to the purchase price of the property, including any applicable down payment and monthly mortgage payments.  Real estate attorneys advise that persons entering into a live-in partnership have a formal, legally binding contract drawn up in order to establish the rights and responsibilities of each partner with respect to the property and the other partner or partners.

Live-work space

A live-work space is an officially designated dwelling in which the occupant conducts a home-based business or enterprise.  The section of the home that is devoted to business may be a direct part of the residential portion of the home, or may be separated in some way.  For example, a business may be conducted from the main floor of a home with the dwelling space designated as an upper floor, or the business may occur in a garage or other attached space with the remainder of the home devoted to only residential purposes.  Workers who use a live-work space may be entitled to deduct a portion of their household expenses on their income tax return based on the proportion of services, such as telecommunications services and utilities, that are devoted to business.

Load-bearing wall

A load-bearing wall is a wall that supports not only its own weight, but also the weight of other parts of a home. Also sometimes referred to as simply a "bearing wall," a load-bearing wall usually provides support to floors above it and to the roof of a home.  A load-bearing wall is crucial to the structural support of a home, and so should not be removed unless an engineered system of beams is used to replace it so that the stability of the house is not compromised.  All exterior walls of a home are load-bearing; interior walls are normally load-bearing if they are situated over a girder or an interior foundation wall.

Loan -to-value ratio

The loan-to-value ratio is a technical measure that is used by lending institutions in order to assess the relationship of a borrower´s loan amount to the value of the property to which the loan was applied.  Loan-to-value ratio is used to establish the limits within which a borrower´s housing and debt ratios must fall in order for him or her to be eligible for a home loan through a particular lender; the limits vary among lenders.  In addition, a high loan-to-value ratio is commonly associated with a higher interest rate on the loan than is a lower ratio.

Loan application

The preparation of a loan application is the first step toward submitting a home loan.  A loan application requires the borrower to itemize his or her basic financial information.  This information is used by the lending institution, in conjunction with subjective data regarding a potential borrower´s credit that can be requested from a credit reporting service (such as Experian, Equifax, or Trans Union Corporation), to determine whether an applicant´s credit worthiness justifies the issuance of a loan to him or her.  Information requested on a loan application typically includes employment, income, assets, and any debts or liabilities for which the applicant is responsible.

Loan application fee

A loan application fee is a fee that is charged by lenders to a borrower of a loan for making a loan application.  The loan application fee is designed to cover the costs to the lender associated with the processing of an application.  Such costs may include the expense of obtaining a property appraisal, which is a professional appraisal of the true value of a property; the cost of securing a credit report for the borrower, which is a record of his or her credit history compiled by a credit repository such as Experian, Equifax, or Trans Union Corporation; and any other closing costs   incurred during the process.

Loan commitment

A loan commitment is a promise that is made by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.  Also referred to often as a commitment letter, because it is usually formulated as a formal letter from the lender to the borrower, a loan commitment expresses the explicit terms and conditions under which the loan will be issued.  It also lays out the amount that the lender is willing to offer and the term of the loan, or the period of time during which the loan is to be repaid in full by the borrower.

Loan officer

A loan officer is an official representative of a lending institution.  The loan officer is empowered to act on behalf of the lender; for example, he or she may have the authority to approve loans, negotiate loan terms with prospective borrowers, and so on.  However, there are certain limits to which a loan officer is confined.  Because a loan officer is an agent of the lending institution, he or she only has the authority bestowed upon him or her by that institution; any actions that go beyond the agent´s authority as granted by the lender subject him or her to potential personal liability in the event that the lender ultimately suffers a loss.

Loan origination fee

A loan origination fee is a fee that is charged by most lending institutions to borrowers for processing a loan.  The amount origination fee is usually expressed on a point system, where one point is the equivalent of one percent (1%) of the total loan amount.  A lending institution uses the loan origination fees it charges to its borrowers in order to generate income.   The fee is usually required to be paid up front by the borrower, prior to obtaining the loan, and in cash.  Borrowers may request information about a lender´s origination fee to compare to alternative lenders and select the most appropriate loan for him or her.  Some lending institutions seek to attract more borrowers by offering low or no loan origination fees.

Loan processing fee

A loan processing fee is a fee that is charged by some lending institutions to borrowers for gathering the information required by the lender to enable it to process the loan.  For example, lending institutions will gather information regarding a loan applicant´s credit history and current financial standing from a credit reporting service, such as Experian, Equifax, or Trans Union Corporation, in order to obtain an independent, subjective, accurate, and comprehensive picture of a borrower´s credit from a third-party, in addition to the information provided by the lender him- or herself.  The loan processing fee is intended to cover the cost of obtaining such reports and evaluating them to determine whether a particular loan applicant should receive a loan, and if so, in what amount.

Loan term

A loan term is the amount of time that is set by a lending institution during which a buyer of real property must pay off a mortgage.  Typically, the repayment is divided into installments for the extent of the loan term, each installment payment consisting of an appropriate portion of the principal due on the mortgage and the interest rate charged by the lender for the loan.  Most conventional loans have 30-year or 15-year terms.  In some instances, a loan term may be longer or shorter.  In addition, a buyer may shorten his or her term by making additional payments over those which are required by the lender, or by paying more than is due in some or all of the payments. 

Lock-in

A lock-in is an approach used by many borrowers of home and other loans when the market is such that interest rates are particularly volatile.  Because the changes in interest rates in such circumstances are unknown and unpredictable, borrowers may want to "lock in" an interest rate; in other words, the interest rate that a borrower has at the time of the lock in will apply over the term specified in an agreement between the borrower and the lender regardless of market fluctuations.  This protects borrowers from facing sudden dramatic increases in interest rates.  Most lenders will oblige to a lock-in, setting a limit on the amount of time that the lock-in is in effect, because they have the potential to profit if interest rates decrease below the lock-in rate.

Loft

A loft is an open living space that is not partitioned into rooms by walls.  A loft may also be a small space built at an elevation above a larger room.  Lofts built into homes are popular for use as playrooms, family rooms, dens or offices, and the like.  When the word is used to refer to a living space as a whole, it is typically in terms of a loft apartment, which is a popular living space type that is often found in large urban areas, such as New York City.  Dwelling lofts usually consist of a single room that accommodates living, dining, and sleeping quarters, and a separate bathroom; a kitchen may or may not be separate from the open area of the loft.

Log cabin

A log cabin was a type of home that was commonly constructed during the early European settlement of the United States.  Log cabins were most often built of rough-hewn timbers, which were easy to find during the nation´s initial settlement, and were relatively simple in design, with clean lines, little aesthetic detail, and only a few large rooms.  In modern times, log cabins are used most often as second or subsequent homes, as mountain retreats or lake homes.  Regular dwellings are sometimes constructed to look like log homes, emphasizing the rustic appearance of  a log home while including all modern amenities.

Low density

Low density refers to a low concentration of housing units in a specific area.  Low density areas are most common in rural areas, where populations are low and/or business and commercial development is minimal.  Low density areas usually are associated with few residences and, often as a result thereof, more physical land associated with each individual property.  For some home buyers, low density areas are especially attractive because noise and other high-density issues are minimized or eliminated; however, low density areas may also have fewer amenities or amenities of lower quality than areas where demand for such amenities is higher.

Low-ball offer

A low-ball offer is an offer that is made to a seller of a parcel of real property that is substantially below the market value for the property.  The longer a property is listed on the market, the more likely there are to be low-ball offers because savvy buyers or their real estate agents recognize that as the time a property is listed increases, the more anxious a seller is likely to become to sell the property, even at a price that is lower than what he or she had originally hoped to realize.  Low-ball offers are also made in instances where some defect exists on the property; some buyers are willing to take on responsibility for alleviating the defect following purchase of the property themselves in exchange for acceptance of a low-ball offer.

Low-documentation loan

A low-documentation loan is a mortgage that requires only minimal verification by a borrower of his or her income and assets.  Low-documentation loans are useful for buyers of real estate who need to secure financing within a very short period of time, and are unable to gather and submit in that time all of the documentation that is usually required by a lending institution prior to issuing a loan.  In most cases, such loans are issued to buyers who are able and willing to make a large down payment, which indicates that they are financially capable of repayment of the mortgage.  A low-documentation loan, because of the increased risk associated with such a loan over a traditional mortgage, usually carries a higher interest rate.

Low-down-payment loan

A low-down-payment loan is a home loan that requires the loan borrower to make only a small down payment before obtaining the financing that the or she requires to purchase a parcel of real property.  This type of loan is a popular option with home purchasers who are short on cash at the time of the purchase.  However, low-down-payment loans present to the lender a much greater risk of default on repayment of the loan by the borrower, and are thus associated with a considerably higher interest rate applied over the term of the loan than is usually charged on a loan where the borrower has the resources to make a larger down payment.