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- Landlord
- The owner of a leased property. See lessor and owner.
- Late charge
- A fee a lender imposes on a borrower when the borrower does not make a payment on time.
- Late payment
- A payment a lender receives after the due date has passed.
- Latent defect
- An invisible problem in a piece of property such as bad wiring or termite damage.
- Lease
- A contract stating the relationship between landlord and tenant that grants a right to exclusive possession or use of property, usually in return for a periodic payment called rent.
- Lease option
- A lease that contains the right to purchase the property within a certain time frame.
- Leasehold estate
- An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
- Legal description
- A description identifying and locating a piece of property that is acceptable to a court.
- Lender
- A bank, savings institution or mortgage company that offer loans.
- Lessee
- The party renting or leasing a property.
- Lessor
- The party who rents or leases a property to another party.
- Letter of intent
- A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
- Leverage
- The ability to control large dollar amounts of a commodity with a comparatively small amount of capital.
- Leverage
- The use of borrowed funds to finance a portion of the cost of an investment.
- Liabilities
- A borrower's debts and financial obligations.
- Liability insurance
- A policy that protects owners against any claims of negligence, personal injury or property damage.
- Lien
- A claim laid by one person or company on the property of another as security for money owed.
- Life cap
- A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 7 percentage points cannot rise above 12 percent.
- Life-cycle cost analysis
- An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
- Limited Partnership
- a legal partnership where some owners are allowed to assume responsibility only up to the amount invested.
- Liquid assets
- Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.
- Liquidity
- The ability to convert an investment into cash quickly without loss of principal.
- Live-work space
- An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
- Loan officer
- An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
- Loan origination fee
- Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.
- Loan point
- see points.
- Loan processing fee
- A fee charged by some lenders for gathering information to enable the lender to process the loan.
- Loan-To-Value Ratio (LTV)
- The ratio between an investment's value and its financing, expressed as a percentage. The higher the LTV Ratio, the higher the risk.
- Low density
- A low concentration of housing units in a specific area.
- Low-rise
- An office building that the Building Owners and Managers Association defines as fewer than seven stories above ground.
Some definitions come from the Certified Commercial Investment Member Institute (CCIM).
