Real Estate Glossary - L

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, which involves training in horticulture, landscape design and planning.

Landscape designer : A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.

Landscape contractor : A professional who carries out the plans of a landscape architect or a landscape designer.

Late charge : A fee a lender imposes on a borrower 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.

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.

Lease : A binding agreement that contains the terms and conditions of a renter's occupancy.

Leasehold estate : An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.

Lease option : A lease that contains the right to purchase the property for a specific price within a certain time frame.

Lender : A bank, savings institution or mortgage company that offers home loans.

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.

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--a 5 percent or 10 percent down payment--to buy a piece of property.

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.

Lien : A claim laid by one person or company on the property of another as security for money owed.

Life cap : A limit on the amount that a loan rate can move during the term of the 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 fix

Life-cycle cost analysis : An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.

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.

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 : When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.

Listing : A piece of property placed on the market by a listing agent.

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.

Loan application fee : A fee charged by lenders to for making 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 representative of a lending institution who is empowered to act on behalf of the lender within certain limits.

Loan origination fee : Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.

Loan processing fee : A fee charged by some lenders for gathering information to enable the lender to process the loan.

Loan term : The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.

Loan -to-value ratio : A technical measure used by lenders to assess the relationship of the loan amount to the value of the property

Lock-in : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

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 and a standard housing form in the early European settlement of the U.S.

Low-ball offer : An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.

Low density : A low concentration of housing units in a specific area.

Low-documentation loan : A mortgage that requires only minimal verification of income and assets.

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.