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Common Joe 'n Jane Real Estate Wiki

Your down-to-earth guide to mastering real estate exam terms and concepts! We've stripped away the industry jargon and complex language, breaking down intricate ideas into bite-sized, easy-to-digest pieces for all the common "Joe 'n Jane's" out there.

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

Land Contract: See contract... (Read more)
Land Trust: A land trust is like a special agreement where one person, called the trustor, gives control of a piece of land to another person, called the trustee. The trustor still gets to benefit from the land and can tell the trustee what to do with it.... (Read more)
Land Use Control: Land use control is a set of rules and regulations that help decide how people can use different pieces of land in a community. These rules make sure that different land areas are used in the best way possible, protecting the environment and... (Read more)
Landlocked: "Landlocked" means a piece of land that has no direct access to a public road or highway. In other words, if you own land that is landlocked, you can't get to it without crossing over someone else's property. This can make it difficult to use... (Read more)
Law of Agency: The Law of Agency is a set of rules that explain how people called agents can act on behalf of others, known as principals, and what they're supposed to do for the people they help, called customers. These rules make sure everyone involved... (Read more)
Law of Decreasing Returns: The Law of Decreasing Returns is a concept in economics that can also apply to the real estate industry. It states that as you add more resources, such as time, money, or effort, to a particular property or investment, the incremental benefits... (Read more)
Law of Increasing Returns: The Law of Increasing Returns is a concept in economics that is the opposite of the Law of Decreasing Returns. It states that as you add more resources, such as time, money, or effort, to a particular product, service or investment, the... (Read more)
Lease: A lease is a contract between two parties, typically a landlord and a tenant, that allows the tenant to use a property for a set period of time in exchange for payment of rent. The lease outlines the terms and conditions of the rental... (Read more)
Leased Fee Estate: A Leased Fee Estate is when someone owns a property but lets another person use it for a certain time in exchange for money, usually called rent. The person who owns the property still has rights over it, but they give some of those rights to... (Read more)
Leasehold Estate: A Leasehold Estate is when a person, called the tenant, has the right to use and live in someone else's property for a specific period, as agreed in a rental contract. The person who owns the property is called the landlord. The tenant doesn't... (Read more)
Legal Description: A legal description is a way of identifying a property in a precise and unambiguous way, using various elements such as boundaries, landmarks, and measurements. It's like a street address, but much more specific... (Read more)
Legal Life Estate: A Legal Life Estate is a special kind of property ownership where someone has the right to use and live in a property for as long as they live. Once that person passes away, the property goes to another person or group, who were already chosen... (Read more)
Legal Title: Legal title refers to the full legal ownership of a property, which means that the owner has the legal right to use, occupy, sell, or transfer the property as they see fit. It includes a bundle of rights, such as the right to possess the... (Read more)
Lessee: A lessee is a person or entity who is renting or leasing a property from another party. It's a legal term that describes the person who has the right to use and occupy the property, but does not... (Read more)
Lessor: A lessor is a person or entity who owns a property and is renting or leasing it to another party. It's a legal term that describes the person who is the landlord or... (Read more)
License: A license is a legal authorization given to someone that allows them to conduct a specific type of business or to use someone else's property for a specific purpose. It's a revocable right that can be taken away at any time by... (Read more)
Lien: A lien is a legal claim on a property that someone has to secure a debt they are owed. It means that the property cannot be sold or transferred until the debt... (Read more)
Lien Priority: Lien priority is the order in which different people or organizations, who are owed money, get paid when a property is sold. Lien priority helps decide who gets paid first, second, third, and so on, when a property owner needs to pay off... (Read more)
Lien Theory State: A lien theory state is a place where, when you get a mortgage to buy a house, the lender doesn't actually own the house. Instead, they have a "lien" on the property, which is like a claim that says they have a right to the money you owe them.... (Read more)
Life Cycle of Real Estate: The life cycle of real estate and neighborhoods refers to the stages of development that an area or property goes through over time. These stages typically include growth, equilibrium, decline,... (Read more)
Life Estate: A life estate is a type of property ownership that gives someone the right to use and enjoy a property for the duration of their life. This person is called a life tenant, and they are responsible for maintaining the property during their... (Read more)
Limited Agency: Limited agency, also known as special agency, is when someone, like a real estate agent, has only a specific set of tasks they're allowed to do for their client. It's like being given a list of chores to complete, and once they're done, the job... (Read more)
Limited Partnership: A limited partnership is a special kind of real estate business, where some people are in charge of making decisions and running things, while others just invest their money. The people in charge are called general partners, and they manage... (Read more)
Linkage: Linkage is a term used in real estate to describe the relationship between different parts of a community or area. It refers to how different areas or neighborhoods are connected and how they affect... (Read more)
Liquidated Damages: Liquidated damages is a term used in real estate contracts to describe a predetermined amount of money that will be paid if one party breaches the contract. It's like a penalty that's agreed upon... (Read more)
Liquidation Value: Liquidation value is a term used in real estate to describe the estimated value of a property if it were to be sold quickly, such as in a foreclosure or bankruptcy sale. It's like the lowest possible value that the property could fetch in a... (Read more)
Liquidity: Liquidity is a term used in real estate to describe how easily an asset can be bought or sold without affecting its price. It's like how quickly you can turn something... (Read more)
Lis Pendens: Lis pendens is a term used in real estate to describe a legal notice that indicates that a property is the subject of a lawsuit. It's like a warning sign that lets people know that the property may be involved in... (Read more)
Listing: A listing is a legal contract that sets out the terms of the agreement between a property owner and a real estate agent. It's like a special agreement between the two parties that says the agent will help sell or rent out the property, and the... (Read more)
Littoral Rights: Littoral rights are the rights that property owners have when their land is next to a large body of water, like a lake or an ocean. These rights allow the owners to use the water and the shore in a reasonable way. It's like living next to a park... (Read more)
Living Trust: A living trust is a legal document that lets you transfer ownership of your property into a trust while you're still alive. The trust then manages the property for your benefit during your lifetime, and after you die, the property is transferred... (Read more)
Loan Commitment: A loan commitment is a promise made by a lender to lend a borrower a certain amount of money under specific conditions. When a borrower applies for a loan, the lender may issue a loan commitment which outlines the amount of money the borrower... (Read more)
Loan Constant: A loan constant is a special number that tells you how much money you need to pay back a loan over a certain period of time, with equal payments. This number takes into account both the interest and principal payments that need to be made, and... (Read more)
Loan Officer: A loan officer is a financial professional who helps people and businesses apply for loans, and determines if they are eligible... (Read more)
Loan Processor: A loan processor is a person who works for a bank or other lender to help prepare and submit loan applications. They review all of the documents and information provided by the borrower to make sure everything is complete and accurate. They also... (Read more)
Loan Underwriter: A loan underwriter is a person who evaluates whether or not someone is eligible for a loan, and determines how much money they can borrow. They look at a variety of factors, such as income, credit history, and the value of any collateral being... (Read more)
Loan-to-Value Ratio (LTV): Loan-to-Value Ratio (LTV) is a way to measure how much money you're borrowing for a home compared to the home's actual value. It's like comparing the amount of money you're asking for in a loan to the price of the item you want to buy. The LTV... (Read more)
Long Term Lease: A long term lease is when someone rents a property for a really long time, often many years. It's like renting a house or an apartment, but for a much longer time... (Read more)
Lot and Block: "Lot and Block" is a way to describe a piece of land in a neighborhood or development. Think of it like a giant grid or puzzle, where each piece is a lot and a group of these pieces together is a block. This system helps people know exactly where... (Read more)

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