Liquidation Price refers to the amount a property would fetch under an immediate sale, typically lower than its market value due to the urgency of the transaction and expenses involved. It contrasts with Market Value, which reflects a sale in normal market conditions.
Liquidity refers to the ease with which an asset can be quickly converted into cash without significantly affecting its market price. This concept is crucial in financial and real estate contexts, as it influences the ability to sell assets promptly and efficiently.
Lis Pendens, meaning 'suit pending' in Latin, is a recorded notice indicating that a lawsuit has been filed which may affect the title to a certain piece of land. This notice serves to inform other interested parties that the property is subject to litigation.
A Listing refers to the agreement between a real estate agent and a property owner that authorizes the agent to act as the owner's representative in the sale of the property.
A listing in real estate refers to a written agreement between a property owner and a real estate agent authorizing the agent to represent the owner in marketing and selling the property. A listing can also refer to the property itself being marketed for sale in the agent's portfolio.
A listing agreement, also known as a listing contract, is a legally binding contract between a property owner and a real estate broker or agent that details the terms and conditions under which the broker will market, promote, and sell the property.
A Listing Broker (Agent) is a licensed real estate professional who secures a listing of the property on behalf of the property owner for the purpose of marketing and selling the property. The Listing Broker is responsible for representing the seller in negotiation and facilitating the sale.
The listing price, also known as the asking price, is the price a seller sets for a property when placing it on the market. It's an initial amount intended to serve as a starting point for negotiations with potential buyers.
Litigation refers to the process of taking legal action, typically involving disputes brought to court, to enforce or defend a legal right.
The term 'Littoral' pertains to properties situated adjacent to a large body of water, such as an ocean, sea, or lake. This term is differentiated from 'Riparian,' which refers to properties adjoining a river, stream, or other flowing body of water.
A load-bearing wall is an essential structural component of a building that supports the weight from the roof, floor, and above stories, transferring weight to the foundation.
A loan is an arrangement in which one party borrows money from another party, often through formal agreements that detail the terms of repayment.
A loan application is a necessary document required by a lender before issuing a loan commitment. It includes key details such as the borrower's personal information, loan amount and terms, property description, and financial and employment data.
A loan application fee is a non-refundable charge required by a loan originator to cover the credit report, property appraisal, and other incidental expenses associated with underwriting a loan.
A decision by a lender to extend credit in a specified amount, often accompanied by a loan commitment outlining the terms and conditions. Also referred to as Loan Preapproval when provided before formal loan application.
Loan closing, often simply referred to as closing, is the final step in the mortgage process where the borrower and lender finalize various agreements and settle necessary payments to transfer ownership of a property.
A Loan Commitment is an agreement by a lender to provide a borrower with a specified amount of funding under specific terms at a future date. This commitment often includes a locked-in interest rate, providing certainty to the borrower.
The Loan Constant, also known as the Mortgage Constant, is used to analyze the burden of debt repayment on a property and measure its ability to generate earnings sufficient to cover mortgage payments.
A loan contract is a document that acknowledges the debt of the borrower and establishes the terms by which that debt is to be discharged. It outlines the payment schedule, prepayment conditions, and what constitutes a default. In cases of mortgage loans, it also includes pledges of real property as collateral.
A Loan Correspondent, also known as a Mortgage Correspondent, serves as an intermediary between borrowers and lenders, primarily offering mortgage products from various financial institutions to clients.
The Loan Coverage Ratio (LCR), also known as the Debt Coverage Ratio (DCR), is a key financial metric used to assess a property's ability to generate enough income to cover its debt obligations. It is widely used by lenders to evaluate the financial health and viability of real estate investments.
A Loan Discount is a type of fee that some lenders charge at the origination of a loan to lower the interest rate charged during subsequent payments. It’s commonly known as discount points.
Loan fraud involves intentionally providing false information on a loan application to qualify for a loan or secure better terms. This illegal act can lead to civil liability and criminal penalties.
A loan lock, or locked-in interest rate, is an agreement between a mortgage lender and a borrower that secures a specified interest rate on a mortgage for a predetermined period, usually ranging from 30 to 60 days.
Loan modification refers to changes made to the original terms of an existing loan agreement between the lender and borrower, usually to prevent foreclosure and provide financial relief to the borrower.
A loan officer assists borrowers throughout the loan application process, coordinating between the borrower and financial institutions to ensure the information provided supports the approval of the loan application.
Loan Origination is the comprehensive process of creating a new loan, which spans from the initial marketing efforts to the actual closing of the loan agreement. This critical phase in lending encompasses several steps to ensure that both the borrower and lender align with the terms.
A loan origination fee is a service charge collected by lenders for processing new loan applications. This fee can cover various administration tasks such as application processing, underwriting, and funding the loan.
A Loan Package is a comprehensive collection of documents that are associated with a specific loan application. This package includes all necessary information required by the lender to evaluate and process the loan request.
Loan points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. This is also referred to as 'buying down the rate.'
Loan proceeds refer to the net amount of money disbursed by a lender to a borrower after all the lender’s fees and other charges have been deducted. It is the actual amount received by the borrower for the intended purpose, such as purchasing real estate.
Loan processing encompasses the various steps taken by a lender to approve a loan, from the initial application to the closing of the loan. It involves verifying the borrower's information and fulfilling necessary requirements to ensure the legality and financial viability of the loan.
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. Typically expressed as a percentage, LTV ratios are used to assess the risk involved in a mortgage or loan agreement.
A loan servicer is a company responsible for collecting and managing loan payments, managing escrow accounts, and handling other administrative aspects of a loan portfolio.
Loan servicing encompasses the administrative aspects of a loan from the moment the proceeds are disbursed to the borrower until the loan is paid in full. This includes the collection of principal, interest, and escrow payments, as well as handling defaults and foreclosures, if necessary.
Loan terms refer to the major requirements and conditions of a loan agreement, including aspects such as interest rates, repayment schedule, fees, and other obligations set by the lender and agreed upon by the borrower.
The Loan-to-Value (LTV) ratio is a critical financial metric in real estate and lending that compares the loan amount to the appraised value of the property, influencing mortgage terms, interest rates, and approval processes.
The Loan-To-Value (LTV) Ratio is a financial term and calculation that lenders use to express the ratio of a loan to the value of an asset purchased. It plays a crucial role in the assessment of risk associated with lending, especially in real estate.
The Local Housing Authority (LHA) is a government entity that develops and manages public housing projects intended for qualified low-income residents.
Locational Obsolescence, also known as Economic Obsolescence, refers to the depreciation or loss in property value due to external factors related to its location, which are beyond the control of property owners.
A lockbox is a secure device placed near the door of a house for sale; it can be opened with a key or combination code given only to members of a Multiple Listing Service (MLS). The lockbox contains a key to the house, providing MLS members access to show the property to clients.
The locked-in interest rate is a promise from the lender to provide a specific interest rate for a mortgage or loan, valid for a predefined period, regardless of market rate fluctuations during that period.
A loft apartment is a residential unit that has been converted from an industrial or warehouse space, often featuring exposed brick, high ceilings, and an open floor plan. These types of apartments are popular in urban areas undergoing gentrification and are favored by artists and creative professionals for their spacious layouts and unique character.
A log cabin is an early-American-style house constructed from unfinished logs. It leverages the simple yet sturdy nature of timber to provide shelter and is often associated with rustic settings.
Long-term capital gain refers to the profit earned from the sale of a capital asset that has been held for longer than a specified holding period, allowing it to qualify for favorable tax rates.
Long-term financing, also known as permanent mortgage, involves a loan with a long repayment period, typically extending over several years or decades. This form of financing is commonly used for purchasing real estate or significant capital investments, and provides borrowers with stability and predictable payment schedules.
A long-term lease typically refers to a commercial lease agreement that spans five years or more or a residential lease agreement lasting over one year. Long-term leases offer stability and predictability for both landlords and tenants, coming with distinct advantages and potential drawbacks for each party.
LoopNet is an internet site providing comprehensive listings and crucial data regarding the leases, sales, and listings of commercial real estate properties. It serves as a pivotal platform for investors, brokers, and businesses in search of commercial properties for sale or rent.
A lot is an individual parcel of land within a subdivision's plat. This land unit must have the appropriate zoning designation to be considered buildable and suitable for construction.
The lot and block survey system is commonly used in urban and suburban areas where parcels of land are divided into subdivisions. This system helps in the precise identification and location of property within a subdivision, facilitating land sales, property taxes, and real estate transactions.
In real estate, a lot line is a demarcated boundary that defines the perimeter of a property described in a property survey. These lines are crucial for determining the exact dimensions and legal boundaries of the land.
A low-ball offer is a substantially lower bid for a property than its asking price, often indicating the buyer's belief that the property is overpriced or that a bargain can be had.
Low-income housing that meets specific criteria and regulations, making it eligible for special tax credits. Stringent guidelines govern tenant qualification, certification, and project financing to ensure compliance with federal and state laws.
A Low-Income Housing Limited Partnership (LIHLP) is a partnership formed to fund and manage housing for low-income tenants. It offers investors potential returns primarily through tax deductions and credits rather than significant annual cash distributions.
Loan-to-Value Ratio (LTV) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The LTV ratio is crucial in assessing the risk of a loan.
Lucas v. South Carolina Coastal Council is a landmark U.S. Supreme Court decision that established a 'total taking' test to determine whether a government regulatory action constitutes a taking that requires compensation under eminent domain.
A Real Estate License is an authorization granted by a state allowing an individual to engage in real estate practices, either as a broker or salesperson, enabling them to legally offer and manage real estate transactions.
