Valley Real Estate
Phone: (330) 629 - 9200
- land contract
- (a.k.a. - contract for deed , installment sale agreement, land installment contract)
- A contract between the owner of the real property (called the "vendor" or the "seller") and a person who wants to buy the property (the "vendee", "contract purchaser", "purchaser" or "buyer") for an agreed-upon purchase price.
Under a land contract the vendor grants equitable title to the vendee (which consists of virtually all rights to the property other than actual legal title), and the vendee agrees to pay the purchase price to the vendor over time, usually in monthly installments, by a certain date. When the full amount of the purchase price is paid, the vendor is obligated to deliver legal title to the vendee by an actual deed, and upon delivery of the deed, the vendee owns equitable and legal title to the property.
A land contract is an alternative way to buy real estate in which the seller provides the financing.
- landlord (lessor)
- A landlord is the owner of a house, apartment, condominium, or real estate which is rented or leased to an individual or business, who is called a tenant or lessee.
- A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal.
- landscape architect
- A professional who holds a degree in landscape architecture, which involves training in horticulture and landscape design.
- landscape contractor
- A professional who carries out the plans of a landscape architect or a landscape designer.
- landscape designer
- A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
- late charge
- The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.
- latent defect
- In the sale of property (both real estate and personal property or chattels) a latent defect is a fault in the property that could not have been discovered by a reasonably thorough inspection before the sale
However, when the defect could have been discovered by the buyer by a thorough inspection (a "patent defect"), the buyer cannot possibly succeed in a claim against the seller unless the seller actively took steps to hide the defect from a normal inspection
See ► Home Buyers -
- law of supply and demand
- The law of supply and demand states that the market price of a good is the intersection of consumer demand and producer supply.
If the price for a good is at a low level where consumers demand more of the good than producers are prepared to supply, there will be a shortage of the good, and consumers will be willing to pay more for it. See Sellers Market. The producers will increase the price until it reaches the level where consumers would not buy any more if the price was increased.
Conversely, if the price for a good is at a high level where the suppliers would like to produce more than the consumers will buy, the producers will be willing to lower the price. See Buyers' Market. The price will fall until it reaches the level where consumers would be willing to pay more for the good.
This point to which prices will move is the point of economic equilibrium, where the quantity supplied is equal to the quantity demanded — producers are prepared to sell exactly the same quantity of goods as the consumers want to buy.
See ► Press Release -
- A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.
- See ► (CDC)
- A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent amount.
- leasehold estate
- A leasehold estate is an ownership interest in realty in which a lessee or a tenant holds real property by some form of title from a lessor or landlord.
- lease-purchase mortgage loan
- An alternative financing plan that is a combination rental and sales agreement. A lease-purchase obligates the tenant to purchase the property at the end of the lease. Most states would see this type of agreement simply as a land installment contract and the same statutes would apply. (Contrast with a lease-option in which the tenant has the right, but not the obligation, to purchase the property.)
The tenant usually pays an above-market rent and receives a monthly rent credit toward the down payment. The seller is obligated to sell the property on the agreed terms.
Ohio does not recognize the lease-purchase as distinct from a land installment contract. Therefore, in case of dispute, Ohio statutes governing land installment contracts would prevail.
- An alternative financing plan that is a combination rental and sales agreement. It is a property lease for a fixed time period (term), such as 12 or 24 months, with an option for the tenant to buy the property at an agreed option price during the lease term.
The tenant usually pays an above-market rent and receives a monthly rent credit toward the down payment. The seller is obligated to sell the property on the agreed terms should the tenant choose to exercise the "option" to purchase.
- legal description
- A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony. A specific way of identifying and locating a piece of real estate that is acceptable to a court.
- legal blemish
- Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
- See >> Home Buyers -
- A bank, savings institution or mortgage company that offers home loans.
- letter of intent
- A formal statement that the buyer intends to lease or purchase the property for a certain price on a certain date.
- The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
- A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.
- liability insurance
- Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. Usually, written into homeowners' Insurance, this insurance will cover the policy holder's legal obligation to pay because of bodily injury or property damage caused to another person.
- London Interbank Offered Rate ( LIBOR )
- A daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market).
- A legal claim against a property that must be paid off when the property is sold.
- 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 6 percentage points cannot rise above 11 percent, even if rates on fixed-rate mortgages soar to 20 percent.
- life estate
- A term used in common law to describe the ownership of land for the duration of a person's life. In legal terms it is an estate in real property that ends at death. The owner of a life estate is called a "life tenant".
Although the ownership of a life estate is technically temporary because it ends at a person's death, it is treated as complete ownership (fee simple) for the duration of the person's life, subject to limitations. Because a life estate ceases to exist upon death, the owner of the life estate cannot leave it to heirs, and the life estate cannot be inherited.
A life estate owner cannot give complete and indefinite ownership (fee simple) to another person because ownership in the property ends when the life tenant dies. If, however, the original grantee has sold his life estate [ex. from A to B], B's interest lasts until A dies, allowing B to bequest his interest, sell the land, etc. until that point. Once A dies, however, whoever possesses the land loses it (with the land likely reverting back to its original grantor). This is a life estate "pur autre vie," or the life of another. Such a life estate can also be conveyed originally, such as "to A until B dies."
- lifetime payment cap
- For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.
- See ► cap.
- lifetime rate cap
- For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan.
- See ► cap.
- life-cycle cost analysis
- An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
- limited partnership
- Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
- A horizontal piece over a door or window that carries the weight of the structure above it.
- 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.
- liquidated damages
- When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.
- A piece of property placed on the market by a real estate broker and his listing agent.
- See >> Multiple Listing Service
- listing inventories
- The known number of houses for sale within a given market.
- live-in partnership
- An arrangement in which two unrelated people purchase a home.
- live-work space
- An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
- load-bearing wall
- A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.
- loan application
- The first step toward submitting a home loan requires the borrower to itemize basic financial information.
- line of credit
- An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower. See home equity line of credit.
- lis penden
- Generally a notification of pending lawsuit. In a foreclosure it is the initial judicial document filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both Notice of Lis Penden and Notification of Default are part of the pre-foreclosure process.
- See ► Real Estate Guide: Owners -
- list price
- The list price is a seller's advertised price. Sellers can price high, low or close to what they hope to get.
- Contrast with ► sale price, appraiser's value, and market value.
- A sum of borrowed money (principal) that is generally repaid with interest.
- loan application fee
- A fee charged by lenders for making a loan application.
- loan commitment
- See commitment letter.
- loan modification
- A Loan Modification is a permanent change in one or more of the terms (type of amortization, interest rate, principal, term length, etc) of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. See .
- loan officer
- An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
- loan processing fee
- A fee charged by some lenders for gathering information to enable the lender to process the loan.
- loan origination
- The process by which a mortgage lender brings into existence a mortgage secured by real property.
- loan term
- The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.
- loan-to-value percentage (LTV)
- The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent.
- A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.
- lock-in period
- The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in.
- Usually associated with commercial loans, a lockout period states that the borrower is not allowed to pay the loan off within a certain period of time. If a loan contains a 7 year lockout the borrower could not pay the loan off within 7 years.
- A living space not partitioned into rooms or a small space built above a larger room.
- log cabin
- Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.
- low density
- A low concentration of housing units in a specific area.
- low-ball offer
- An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.
- See ► Real Estate Guide: Home Sellers (Negotiating) -
- low-documentation loan
- A mortgage that requires only minimal verification of income and assets.
- See ► Real Estate Guide: Mortgages (Easy Qualifying Loans) -
- low-down-payment loan
A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.
- See ► Real Estate Guide: Mortgages (Easy Qualifying Loans) -