Vocbulary L Flashcards
(15 cards)
Latent defense
Known, material, damage property conditions that are reasonably prudent buyer cannot easily and readily discover
Lease
Instrument that transfers the right of exclusive use and possession (but not ownership) of real estate form the landlord (lessor) to the tenant (lessee) for a specific period of time
Leverage
The use of borrowed funds to finance an investment
License
Personal, non-assignable privilege granted by one person to another
Lien
Encumbrance on property that functions to guarantee payment of debts by using property as collateral
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Life tenant
Person holding a life estate
Like -kind exchange
Method of avoiding capital gains tax by exchanging qualified property
Liquidated damages
Damages specifically agreed by to contracting parties in the event of a breach
Liquidity
Assets converted into cash
Lis Pendens
Latin phrase meaning “action pending” which describes the concept of providing notice of a possible future lien
Listing agreement
Agreement between a salesperson and a estate broker
Loans estimates
Forms required by RESPA AND TILA in covered property settlement
Loan o value ratio (LTV)
Ratio between a mortgage loan amount and the sales price or appraised value of real estate, whichever is lower
Lot, blocks and subdivision
Method to legally describe property, which begins with a large tract of land known as subdivision plat
Lucid intervals
Period of time which a legally incompetent person is judged by a court to have been temporarily of sound mind
