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lally column
A circular pipe filled with concrete that supports
girders and beams. |
laminate
Plastic material used to seal countertops. Also
known by the trademark name Formica. |
lanai
A porch-like room or open-sided living room commonly
found in homes in warm climates. |
landscape
A home's surroundings can range from a shrub-studded
emerald lawn to a native-plant xeriscape. It is a
major component of curb appeal. |
landscape architect
A professional who holds a degree
in landscape architecture and is trained in horticulture,
design, and planning. |
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landscape contractor
A professional who carries out
the plans of a landscape architect or a landscape
designer. |
landscape designer
A landscape designer has training
in horticulture and landscape planning, but does not
necessarily hold a degree. |
lap siding
A type of siding composed of horizontal boards
with the bottom of one piece overlapping the top of
the piece below it. |
late charge
A fee imposed by a lender when the borrower does
not make a payment on time. |
late payment
A payment a lender receives after the due date
has passed. |
latent defect
An invisible problem in a piece of property such
as bad wiring, termite damage, or lead paint. |
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lead
A metallic chemical element present in older dwellings,
primarily in the form of lead-based paint and lead
plumbing. Exposure to lead has been found to be a
health risk. |
leader
A pipe that carries rainwater from the gutters
to the ground, sewers, or wells. |
lease
A binding agreement that contains the terms and
conditions of a renter's occupancy. |
lease option
A lease that contains the right to purchase the
property for a specific price within a certain time
frame. |
lease purchase
A type of delayed closing. The lease purchase
contract sets the closing date and provides remedies
to the seller if the buyer defaults. |
leasehold
The limited interest in a property held by a tenant;
primarily the right to inhabit it for a specified
period of time. At the end of the lease, the property
reverts to the owner or landlord. |
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leasehold estate
An arrangement in which the borrower
does not own a specific piece of property but possesses
a long-term lease. |
leasehold interest
The limited interest in a property
held by a tenant; primarily the right to inhabit it
for a specified period of time. At the end of the
lease, the property reverts to the owner or landlord. |
legal blemish
Blemishes on a piece of property, such as a zoning
violation or fraudulent title claim. |
legal description
A specific way of identifying and
locating a piece of real estate that is acceptable
to a court. |
lender
A bank, savings institution, or mortgage company
that offers home loans. |
lessee
A person to whom property is rented under a lease. |
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lessor
A person who rents property to another under a
lease. |
letter of intent
A formal statement that the buyer intends to purchase
the property for a certain price on a certain date. |
leverage
The use of a small amount of cash (for example,
a 5 percent down payment) to buy a piece of property. |
levy
The amount of money a governing body certifies
to be raised from the property tax. |
liabilities
A borrower's debts and financial obligations. |
liability insurance
A policy that protects owners against
any claims of negligence, personal injury, or property
damage. |
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LIBOR
Acronym for "London Interbank Offered Rate." An
index used to determine interest rate changes for
adjustable rate mortgages. |
lien
A claim laid by one person or company on the property
of another as security for money owed. |
life cap
Limits the amount that a loan rate can change
during the mortgage term. For example, if the rate
on an adjustable-rate mortgage begins at 5 percent
and has a life cap of 6 percentage points, it can't
go over 11 percent. |
life-cycle cost analysis
An analysis of a building project's
expected operating, maintenance and replacement costs,
calculated by an architect. |
lifetime rate cap
In an adjustable rate loan (ARM),
a maximum interest rate or "ceiling" that may not
be exceeded under any circumstances over the entire
life of the loan. |
limited partnership
Real estate syndicates and other
investment groups use this type of ownership.. A general
partner makes the group's investment decisions, oversees
the investment and is principally liable for any losses. |
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lintel
A horizontal piece over a door or window that
carries the weight of the structure above it. |
liquid assets
Cash and all other assets that can be converted
to cash relatively quickly. Liquid assets can include
money in savings and checking accounts, money-market
accounts, and most certificates of deposit. |
liquidated damages
A sum of money specified in the
purchase contract to be paid by one party to the other
in the event of a breach of contract. |
liquidity
The ability to sell an asset at a price close
to its true value and convert it into cash in a short
period of time. |
listing
A piece of property placed on the market by a
listing agent. |
listing agent
A broker or sales agent who has contracted with
a seller to handle the marketing and sale of a piece
of property. |
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listing broker
A real estate broker responsible
for the listing of the property and representing the
interest of the seller. (Also called a listor or seller's
broker.) |
listing inventories
The known number of houses for
sale within a given market. |
live-in partnership
An arrangement in which two unrelated
people purchase a home. |
live-work space
An officially designated dwelling in which the
occupant conducts a home-based business or enterprise. |
load-bearing wall
A wall that supports not only its
own weight, but the weight of other parts of a home.
Also called a bearing wall. |
loan application
The first step toward submitting a home loan requires
the borrower to itemize basic financial information. |
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loan application fee
A fee charged by lenders to cover
expenses incidental to a loan application. |
loan commitment
A promise by a lender or other financial institution
to make or insure a loan for a specified amount and
on specific terms. |
loan officer
An official lending institution representative
who is empowered to act on behalf of the lender within
certain limits. |
loan origination fee
The lender requires a loan origination
fee (or points) to cover the direct costs of arranging
the loan. |
loan term
The time set by a lender for a buyer to pay a
mortgage. Most conforming loans have 30-year or 15-year
terms. In the case of balloon loans, payments are
based on the amortization period and a final payment
due at term. |
loan type
The type of loan determines its borrowing limit,
down payment requirements, and qualifying rules. Available
loan types include conforming, jumbo, FHA, and VA. |
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loan-to-value ratio (LTV)
The ratio of the total loan amount
to the value of the property. For lending purposes,
the value is equal to the purchase price or the appraised
value, whichever is lower. |
local improvement district
(LID)
A legal district established by
state law to benefit a specific area. Districts issue
bonds to finance improvements such as sidewalks and
sewer systems, then levy assessments on real estate
in the affected area to repay funds. |
lock-in
A lender's commitment to a borrower to guarantee
(or "lock in") a specific interest rate for a limited
amount of time. |
lock-in period
A period of time during which the borrower is
guaranteed an agreed-upon interest rate, even if market
rates rise. The longer the period, the higher the
cost (in points) to the borrower. |
loft
A living space not partitioned into rooms or a
small space built above a larger room. |
log cabin
Homes constructed of rough-hewn timbers; a standard
form of housing during the settlement of the United
States. |
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louvers
Slatted panels mounted in the upper portion of
a gable wall to provide attic ventilation. |
low density
A low concentration of housing units in a specific
area. |
low down-payment loan
A home loan that requires the borrower
to make only a small down payment before obtaining
the financing needed to purchase a house. |
low-documentation loan
A mortgage that requires only minimal
verification of income and assets. |
low-emissivity
A coating or film applied between panes of glass
in high-efficiency glazing; abbreviated "low-E." |
lowball offer
An offer made to a seller that is substantially
below market value. |
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LTV (loan-to-value ratio)
The ratio of the total loan amount
to the value of the property. For lending purposes,
the value is equal to the purchase price or the appraised
value, whichever is lower. |
