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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.
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