| Laches - Delay or negligence in asserting one's rights. |
| Land - In a legal sense, the solid part of the surface of the earth, as distinguished from water; any ground, soil, or earth whatsoever, regarded as the subject of ownership; everything annexed to it, whether by nature (e.g., trees), or-by humans (e.g., buildings, fences, etc.); and everything on or in it, such as minerals and running water. - |
| Land Contract - See Installment Land Contract |
| Landlord - One who rents or leases real estate to others; the lessor. |
| Land Use Controls - Public and private restrictions on the use of property. |
| Latent Ambiguity - A condition that exists in a description of real property in a deed or contract that is insufficient in itself to identify a parcel of property, but that provides a reference to outside facts by which the land involved might be identified. Compare Patent Ambiguity. |
| Latent Defect - A property defect which is not discoverable by a reasonably diligent inspection; a hidden defect. Compare Patent Defect. |
| Lease - A type of contract, written or oral, between the owner of real estate, the landlord, and another person, the tenant, covering the conditions upon which the tenant may possess, occupy, and use the real estate. |
| Leased Fee - The interest of a lessor in leased property that the lessor owns in fee. |
| Leasehold - The interest (estate) a lessee has in real estate by virtue of her/his lease. Also called a nonfreehold estate. |
| Legal Description - A statement containing a designation by which land can be identified sufficiently to meet the requirements established by law. |
| Legal Title - The interest in real property that is held by (a) the trustee under a deed of trust, (b) the seller under a valid "interim" real estate sales contract, and (c) the seller under an installment land contract. See also Equitable Conversion. Distinguish from Equitable Title. (Note: The owner of real estate that is not encumbered by a deed of trust and is not the subject of a real estate sales contract holds both legal and equitable title to his/her property.) |
| Lessee - The person who leases property from another; a tenant. |
| Lessor - The owner who rents or leases property to a tenant or lessee; the landlord. |
| Leverage - The creation of a higher return on a cash investment in real estate by using borrowed money. |
| Liability Insurance - As related to real estate, insurance that indemnities a property owner in the event that he/she is found liable for damages to a third party who has been injured on the insured's property. |
| License - A privilege or right granted to an individual by the state to engage in a business or profession, e.g., as a real estate broker or salesman; in real property law, a license is an authority to go upon or to use another person's land or property without possessing any estate therein. |
| Lien - A charge, hold, or claim that one person has upon the property of another as a security for the payrnent of a debt. |
| Lien Foreclosure Sale - The involuntary transfer of property to satisfy a tax obligation judgment, or similar obligation that has been secured with a lien on the debtors property. |
| Lien Waiver - A document signed by a contractor, subcontractor, laborer, or materialman waiving the right to a mechanic's lien claim on the property. |
| Life Estate - An estate or interest in real property that exists only for the life of a certain designated person. The "life tenant" has the exclusive right to possession, control, and use of the property during the term of the life estate. Upon the death of the person whose life is the "measuring life," title to the property automatically vests in the designated "remainderman." See also Life Estate Pur Autre Vie, Life Tenant, and Remainder. |
| Life Estate Pur Autre Vie - A life estate in property measured by the life of another person (i.e., a person other than the life tenant). If the holder of this type of life estate dies before the measuring life, the heirs of the life tenant inherit the property and will hold it until the measuring life dies. |
| Life of Loan Cap - A ceiling (maximum upper limit) the interest (note) rate on an adjustable rate mortgage cannot exceed over the life of the mortgage loan. |
| Life Tenant - A person who owns a life estate in land or other real property. |
| Like-Kind Exchange - Under the Internal Revenue Code, the exchange of property held for productive use in a trade or business or for investment for other property of a like kind to be held either for productive use in a trade or business or for investment. |
| Limited Partnership - A partnership where some of the partners have their liability limited to the amount of money that they have invested. The North Carolina Uniform Limited Partnership Act must be complied with. |
| Liquidated Damages - An amount of money agreed upon in advance by parties to a contract that will be payable In the event that a party to the contract breaches it. |
| Lis Pendens - A recorded legal document giving notice of the pendency of an action affecting the title of real estate. |
| Listing Contract - A document in which a property owner contracts with a broker as agent to deal with the owner's property; the document executed by an owner giving a broker authority to find a buyer for her/his property. Often referred to simply as a "listing." |
| Littoral Owner - A person who owns property adjacent to an ocean or lake. |
| Loan Commitment - A commitment by a lender to make a particular mortgage loan to a loan applicant under specified terms. The commitment, which may be either a "conditional" commitment or a "firm" commitment, is valid for only a specified period of time. |
| Loan Origination Fee - See Origination Fee. |
| Loan-to-Value Ratio - The relationship between the amount of a loan and the appraised value of the property secured by the loan, usually expressed as a percentage. |
