Real Estate Glossary L [Part 6]


Continued from…

:point_right: Real Estate Glossary L [Part 5]

Land agent

In some states, this is the term for real estate agents.

Land broker (S.A.)

The Real Property Act says that a person can do business if they have successfully finished the right education course and gotten a licence from the Land Brokers Licensing Board. After a contract has been signed, this person puts together the paperwork and adjustment sheets that are needed to settle the matter.

Land tax

A tax paid to the state government every year based on how much the property is worth.


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Land usage

How land is being used or how it can be used according to zoning laws. Zoning laws control how land is used in a community. They do this by setting building codes and setback rules. The best way to use land is to put it to its highest and best use.

Lean to roof

A roof with a slope that is held up on one side by the wall of a building next to it.


A small building with a single pitched roof that is usually built next to the outside wall of a bigger building.

Limited title

Before a property has been surveyed, it has a Torrens Title.

Long-term lease

A lease agreement that lasts 10 years or more is generally considered to be a long-term lease. Under such leases, the tenant may want or be required to do extensive remodelling, or, if the property leased is land, to build a building or make other improvements.

Lead manager

The investment banking firm that usually has the biggest stake in a new issue of securities and is in charge of most of the coordination work for the issue.

Lease abstract

A summary of a lease document that includes the lease’s specific details.

A synopsis of a lease document that lists the particulars unique to that lease.


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Lease term

The lease’s duration.

Lessee’s Improvements or Tenant’s Improvements

Installed and paid for by the tenant to meet the tenant’s needs, fixed improvements or additions to land or buildings. Usually removed by the tenant at the end of the lease, with no damage to the property.

Licensed real estate agent

A licensed real estate agent is qualified to carry out the tasks involved in running a real estate business. He or she is authorized to be in charge of the legal compliance operations of an agency.

Line of credit loan

A loan that functions like a credit card and allows you to withdraw money as needed. There are occasions when you must make minimal, regular interest-only payments.


Secure garage.

Landslide risk

A landslide risk is the likelihood that a landslide may occur in a specific area or place, together with the possible harm to property and danger of fatalities.

Loan model

The active loans for a property are located and identified using a lending model.

Lot features

The features of a parcel of land are referred to as lot features.

Lot size

The size of a parcel of land is referred to as the lot size.

Land registration

The process through which a state entity registers transfers of ownership of real estate interests in order to make the transfer decisively effective and/or public awareness.

Lease assignment

Lease payments are made directly to the servicer as a means of credit enhancement.

Legal final maturity

The date by which the main balance of a security is due.

Limited purpose entity (LPE)

A business vehicle that meets rating agency LPE criteria (whether in the shape of a limited company, partnership, trust, limited partnership, or another form). The property is usually owned by an LPE. Owing to the inherent risks associated with property ownership, LPEs are not totally bankruptcy resistant, but rather are constructed to manage insolvency risks to the greatest extent practicable. The utilisation of freshly established organisations, contractual constraints on operations and powers, non-petition covenants, separateness covenants, and no employees are all characteristics that reduce insolvency risk.

Line-of-credit mortgage loan

A mortgage loan that is tied to a revolving line of credit that the borrower can access at any moment during the loan’s term. The loan’s interest rate is normally variable and accrues solely on the outstanding balance, whereas the undrawn principle limit grows at an annual rate.


A voluntary liquidation or a mandatory liquidation. Voluntary liquidation is a non-court-based procedure initiated by the firm’s Shareholders to wind up the company. There are two types of voluntary liquidation: I members’ voluntary liquidation, which can begin if the company’s directors are able to swear a declaration that the company is solvent and 75% of the company’s members agree to place the company into liquidation, and (ii) creditors’ voluntary liquidation, which cannot begin unless the directors swear that the company is solvent. A compulsory liquidation is initiated by a court petition, which is typically brought by a Creditor who is owed money by the company.

Liquidation fee

The charge normally payable to a special servicer in respect of a specially serviced loan in the form of a percentage of the proceeds of sale (net of costs and expenses of sale) resulting from the sale of a loan, any obligor of such loan, or any part of any property or properties securing such loan.


Insolvency practitioner: A person who is hired by the Shareholders or unsecured Creditors of a company, or by a court, to handle the closing down of a business.

Liquidity facility

A facility, like a line of credit, that is used to improve the liquidity of securitized assets but not their creditworthiness. If the Issuer doesn’t have enough cash on hand to pay the principal and interest on securities, this facility gives them the money they need to make these payments. When this facility is used, the money borrowed becomes a senior obligation of the Issuer and has at least the same rank as the related securities.

Liquidity provider

A liquidity facility provider.


A stock exchange listing (quotation) for public trading.

Listed building

A building of unique architectural or historical interest that the owner is not permitted to change, extend, or demolish without the authorization of the listed building commission.

Listing agent

The agent in charge of carrying out the procedures necessary for securities to be listed on the proper stock exchange.

Loan agreement

The document that outlines the terms under which the Lender is willing to lend money to the Borrower. In addition to the commercial provisions of the Loan, the Loan Agreement will include statements, covenants, undertakings, and Events of Default.

Loan files

A servicer’s record of debt service payments, property protection advances, property inspection reports, financial statements, property level intelligence, amendments to any loan instruments, and records of special servicing transfer events, among other things.

Loan loss provisions

An expense set aside as a reserve for bad loans (when a customer defaults or terms of a loan have to be renegotiated, for example).

Loan to value covenant

The Borrower’s promise that the Loan will not exceed a specified LTV threshold.

Loan warranties

A loan assurance or promise, the breach of which may give rise to a claim for damages.

Lock box provision

A clause in a CMBS that gives trustees control of the underlying properties so that property owners can only claim cash flows after expenses.

Lock-out period

The amount of time after the loan was made that the borrower can’t pay it off early.

Long term refinancing operation (LTRO)

The European Central Bank manages liquidity in the banking sector through Refinancing Operations, which are essentially repurchase agreements. Banks provide appropriate collateral to the ECB in exchange for a cash loan. In December 2011, the ECB extended the borrowing period to allow banks to obtain relatively cheap credit for up to three years.

Loss curve

A graph that shows how losses on a sample of loans or receivables change over time. This is done by plotting the defaults or losses that happen over the life of all loans or receivables in the sample.

Loss given default

This is the loss expressed as a percentage of the Exposure at Default.

Loss ratio

The proportion of an insurer’s premium income spent on paying and/or adjusting claims in any given year, stated as a percentage of premium income.

Loss security

The proportion of outstanding principal paid on loans minus realised loss to outstanding principal on mortgage loans. Provides a loss rate on a liquidated mortgage.

Loss to lease

The discrepancy between the rent being paid for a property and its market rental rate.

LPA receiver

A person (who is not necessarily an insolvency practitioner) designated by a Lender with a Fixed Charge over property to enforce the Lender’s Security under the Law of Property Act 1925. The responsibilities and duties of an LPA Receiver are outlined under the Law of Property Act 1925, but these might be changed by stated provisions in the Security Agreement. An LPA Receiver is typically appointed with the intention of selling the charged property or collecting rental income for the Lender.

Landlord’s lien

A lien can be made by contract or by the way the law works.
Here are some examples: (1) a contractual landlord’s lien based on a lease agreement; (2) a statutory landlord’s lien; and (3) a landlord’s remedy of distress (or right of distraint), which is not really a lien but has the same effect when the landlord wants to attach a tenant’s property to pay the landlord’s claim.

Landlord’s lien or warrant

In some states, distraint is a document that allows a landlord to take a tenant’s personal property (such as furniture or tools) and sell it at a public auction to get the tenant to pay rent or other financial obligations based on the lease.

Lease agreement

Any deal that sets up a bond between a landlord and a tenant. A written agreement between a landlord and a renter that states the terms and conditions of the exclusive use of the rented space.

Lease commencement date

The date that generally marks the beginning of the lease term for all purposes, even if the tenant has not yet moved in, as long as it is possible for them to do so. In fact, this definition could be changed by other agreed-upon dates, like those in an Early Occupancy Agreement.

Legal owner

Technically, this term is not the same as fair owner. The property belongs to the legal owner.

Letter of attornment

A letter from the seller (grantor) to the renter (grantee) telling the tenant that the property has been sold and that rent should be paid to the buyer (grantee).

Lien waiver (Waiver of lien)

A general contractor and his subcontractors must sign a waiver of mechanic’s lien rights before the general contractor can get a draw under the payment terms of a building contract. Before the owner can get a building loan draw, this may also be needed. About half of the states in the U.S. give real estate agents the right to put a lien on a property to secure their sale or lease commision. In these states, the broker usually has to give up the lien in exchange for payment of the commision.

Lump sum contract

A type of construction contract that says the general contractor has to finish a building or project for a fixed price, which is usually set by bidding. Any loss or profit over the lump sum is taken on by the worker.