Property Legal Terms (L)

land

the land surface everywhere and includes mountains, hills, streams, ponds, canals, swamps, marshes, waterways, lakes, islands and sea coast.

land owner

A person or body corporate that owns the land.

land particulars certificate

The paper showing the inquiry for the purpose of issuing a title deed and shall also include the plot identification slip.

land reclamation

Creation of habitate land by filling up low-lying lands, wetlands, lakes or portions of the seashore.

land records

The records maintained under the provisions of, or for the purpose of, the relevant land venue code and includes a copy of maps and plans or a final town planning scheme, improvement scheme or a scheme of consolidating of holdings that has come into force in any area under any law in force

land use planning

The drawing up for a long-term plans for the use of land in a particular area of region

landing

A flat platform at the top, bottom or in the middle of a flight of steps.

landlocked parcel

A plot of land entirely surrounded by other privately owned land

landlord

The owner of a property that has been leased

landlord's improvement

Any work of a capital nature, i.e., other than maintenance or repair, undertaken by landlord, or by the tenant at the landlord's expense, which increases the value of the landlord's interest in a property.

landscape

The setting of the land surrounding a building or structure. Nowadays, this is often done artificially to increase the value of the property.

layout

Design, plan or arrangement of any given space, such as the rooms or apartment, etc.

late charge

The penalty a borrower must pay when a payment is made a stated number of days. On a first trust deed or mortgage, this is usually fifteen days.

lease

A written agreement between the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.

lease agreement

An agreement recording a lease between lessor and lessee

lease with option to purchase

A lease agreement which gives the lessee the option of purchasing the property within or on or after a specified date. The price and conditions under which such purchase will take place are usually mentioned in the agreement.

leasehold

The real estate which is the subject of a lease (a written rental agreement for an extended period of time). The term is commonly used to describe improvements on real property when the improvements are built on land owned by one party which is leased for a long term (such as 99 years) to the owner of the building.

leasehold improvements

Additions, alterations and improvements made to a leasehold property by the lessee

leasehold estate

A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.

leasehold value

Total value of a leasehold right.

lease option

An alternative financing option that allows home buyers to lease a home with an option to buy. Each month's rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.

legal description

A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.

lender

A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as "lenders."

legal owner

A person or corporation or trust with a legal title over a property.

legal title

Title recognised by law as the root of most other subordinate forms of title, e.g., lease or mortgage. However, legal title can be encumbered by a lease or mortgage, such that transfer of the title will not affet the rights of those with other forms of interest over property

lender

An individual or corporate body which loans money that has to be repaid.

lessee (also called tenant)

The person renting the property under a written lease from the owner (lessor).

lessee improvement

To enhance the demised premises for the tenants business operations, the tenant is entitled to carry out interior works with prior intimation to the landlord and subject to necessary approvals from the local authorities.

lessee's indemnification

The lessee will indemnify the lessor/landlord against all and any loss or damage which the lessor/landlord may sustain by reason of claims brought against the lessor alleging bodily harm, injury and death to any person

lessor (also considered as landlord)

The owner of real property who rents it to a lessee pursuant to a written lease.

lessor's indemnification

The lesse will indemnify the lessor/ landlord against all and any loss or damage which the lessor/landlord may sustain by the reason of claims brought against the lessor alleging bodily harm, injury and death to any person or damage to property which has been mutually discussed, described and agreed in the agreement

lettable area

Floor area allocated to a unit or space and quoted for leasing purpose. The area is usually measured from the exterior of the enclosing walls of the units and includes the unit's share in the common area.

letter of intent

A letter written by a party or joint venturer expressing an intention to proceed with the transaction in the future. A letter of intent is not usually legally binding

letting

Leasing or renting

liabilities

A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.

liability insurance

Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. It is usually part of a homeowner's insurance policy.

license

An official document giving a person or corporate body the permission to do something, such as enter, live in or use a property.

licensee

A person who has a license

lien

A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.

life cap

For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the mortgage.

life tenant

A person whose lease rights are valid only during his or someone else's lifetime

limited liability

The maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership

line of credit

An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.

liquid asset

A cash asset or an asset that is easily converted into cash.

loan

A sum of borrowed money (principal) that is generally repaid with interest.

loan officer

Also referred to by a variety of other terms, such as lender, loan representative, loan "rep," account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.

loan origination

How a lender refers to the process of obtaining new loans.

loan servicing

After you obtain a loan, the company you make the payments to is "servicing" your loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services.

loan-to-value (LTV)

The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).

lobby

Area just inside an apartment, building, hotel, theater or house that leads on to the more functional areas

location

Geographical position of a person or thing or structure. Good or bad locations depend on the intended use of the property.

lock-in

An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.

lock-in period

The time period during which the lender has guaranteed an interest rate to a borrower.

long-term lease

A lease agreement that is valid for a long period of time. The legal definition of “long-term' varies from country to country

lot

A portion or part of a property

luxury apartment

An apartment that has the top luxury facilities and amenities