Legal Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

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Legal description: A specific way of identifying and locating a piece of real estate that is acceptable to a court.

Lessee:  the party entitled to present possession of a leased lot whether lessee, sublessee, or assignee.

Libel: A libel case consists of published material with the following criteria: (1) The material is defamatory; (2) the written statements are about someone who is identifiable and living; (3) the material is distributed to someone other than the victim. A key in a libel case is that the victim's reputation must suffer as a result of these written words in order for the action to be actionable.

Lien: Charge against or interest in property to secure payment of a debt or performance of an obligation including condominium or planned community homeowner assessments or deeds.

Limited common element:  A portion of the common elements allocated by the declaration or by operation of law for the exclusive use of one or more but fewer than all of the lots or units.

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.

Limited liability company: A flexible business organization that offers the advantages of liability protection with the simplicity of a partnership.

Limited partnership: A special type of partnership which is very common when people need funding for a business, or when they are putting together an investment in a real estate development.

Liquidate: To sell the assets of a business, paying bills and dividing the remainder among shareholders, partners or other investors.

Liquidation preference: Certain classes of stock (usually preferred stock) may have a liquidation preference, which entitles the holders to be paid first in the event of the liquidation of a corporation's assets.

Listing: A written contract between an owner (principal) and an agent (broker) authorizing the agent to sell, lease or rent the owner's property in exchange for a compensation.

Loan application: The first step toward submitting a home loan requires the borrower to itemize basic financial information.

Loan Discount Points: Points a lender charges to reduce interest rate; may be paid by either buyer or seller; one point is equal to 1 percent of the loan value.

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 to Value (LTV): The ratio of the amount borrowed to the property's appraised value or selling price.

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.

Loss of consortium: Damages awarded to a family member (usually a spouse) for loss of companionship.

Lot:  A physical portion of the planned community designated for separate ownership or occupancy by a lot owner.

Lot owner:   A declarant or other person who owns a lot, or a lessee of a lot in a leasehold planned community whose lease expires simultaneously with any lease the expiration or termination of which will remove the lot from the planned community, but does not include a person having an interest in a lot solely as security for an obligation.

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