Real Estate Glossary Letter :  L

Real Estate Glossary Letter :  L

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LAGGING – Material wrapped around piping for insulation or protection of pipe, particularly reducing heat loss in hot water pipes.

LAMINATED TIMBER – A built-up timber member made from several timber sections glued together to increase its structural strength or to create a multi-grain or colour effect in bench tops etc.

LAND – The part of the Earth not covered by water. Land can be owned as property or held for productive use, generally, however, the land is the specific bounded area on which an owner has an interest in which that owner may build upon, farm or simply leave vacant.

LAND AGENT – See Agent.

LAND BANKING – The practice of acquiring land and holding it for future use.

LAND BURDENED – The land that is subject to the easement – eg land which the easement is over, is referred to as the servient tenement or land upon which the burden of the easement is imposed.

LAND DIVISION – The process which results in the cancellation of existing and the creation of new plan parcels and the issue of new certificates of title.

LAND TAX – A tax payable annually in respect of the beneficial ownership of land, the rate of which is determined by the assessed valuation. Usually based on the unimproved value of land.

LAND USE CODE – LUC – Used to describe the various uses of land and structures upon it. See land use codes

LANDING – An intermediate platform between two flights of stairs.

LANDLORD – The owner of leased property. The lessor.

LANDS TITLE OFFICE – The lands title office or lands registration office established by statute administers the provisions of the Real Property Act.

LATTICE – A framework of crossed wood or metal strips used as a screen.

LEAN-TO – A small structure with a single pitched roof, usually erected against an outside wall of a larger structure.

LEAN-TO ROOF – A sloping roof supported on one side by the wall of an adjacent building.

LEASE – An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Usually between a landlord and tenant.

LEASE TERM – The period of the lease.

LEASEHOLD – Possession and use of a property by virtue of a lease.

LEGAL ESTATE OR INTEREST – An interest in or right over land which may be enforced by a court of law (as opposed to a court of equity). As a generalisation (and one which does not always hold true) a legal estate or interest in land which is registered on a certificate of title. Examples include a registered estate in fee simple and a registered mortgage or lease.

LEGAL FEES– Money paid to a solicitor or conveyancer.

LESSEE (TENANT) – A person / legal entity who receives the right to occupy and use a property under the terms of a lease.

LESSOR (LANDLORD) – The owner of a property who transfers the right to occupy and use the property to another by way of a lease agreement.

LET OUT CLAUSE – Also known as 48 HOUR CLAUSE – This clause is inserted if you are making an offer that is conditional upon the sale of your existing property, but the seller wants to continue marketing their property in the hope of receiving an unconditional offer. Within the 48-hour clause, the seller has the right to continue advertising their property and to negotiate with a potential second buyer. If the seller receives an alternative offer they wish to accept, they must notify you of this. You would then have two business days to secure an alternative source of finance or obtain a contract for the sale of their existing property. If you do not waive the condition before the two days are up, then the contract comes to an end and your deposit will be returned. The seller is then able to enter into a contract with the alternative buyer. We strongly encourage buyers and sellers to fully understand the terms and conditions before agreeing to it.

LIABILITIES – Your outstanding debts or what you owe.

LICENSED REAL ESTATE AGENT – A Licensed Real Estate Agent may perform the activities in the conduct of a real estate business. He/she is licensed to hold responsibility for an agency’s legislative compliance activities.

LIEN – A charge, security or encumbrance upon property for the payment of debt.

LINTEL – A beam spanning over an opening and supporting loads above.

LISTING – (a) A term commonly used by agents for obtaining written instructions to sell or lease real estate; (b) The recording of properties as being available for sale.

LIVE LOAD – The expected range of weight a building (or a part of it) can tolerate based on the structure’s intended purpose and occupancy. It only includes people and movable objects (such as furniture). See also dead load and environmental load.

LMI – LENDERS MORTGAGE INSURANCE – This type of insurance protects the lender, not the borrower, in the event that the borrower can’t meet the loan repayments and the net proceeds of an enforced sale of the property would not be enough to cover the loan. This insurance helps lenders broaden the net of who they are able to lend to by taking some of the risks out of lending the money. It means that more people are likely to get a loan and the home they want sooner.

LOAD BEARING WALL – Any wall supporting some weight other than its own; all exterior walls and any interior walls aligned above a support beam falls into this category.

LOAN – Money borrowed that is usually repaid with interest.

LOAN ORIGINATOR – A person who works for the lending institution whose job it is to meet with potential borrowers to discuss loan options, rates, etc.

LOCK BOX – See Keysafe

LOCK UP – The stage in a building construction project when the shell of the house is properly secured, and only those with keys can get in: Exterior doors are fitted with locks, windows are glazed, and entry points safeguarded.

LONG-TERM LEASE – Generally considered to be a lease extending for ten years or more. In some long term leases the lessee or tenant may desire, or be required, to do extensive remodelling or, if the property leased is land, to construct a building or other improvements.

LOT – A lot or block subdivided from a larger portion of land. Also referred to as an allotment.

LOUVRES – Overlapping timber, glass or metal blades built into an adjustable frame or opening to ventilate, or control light penetration.

LOW DOC LOANS – ‘Low-Doc’ or Low Documentation Loans are designed for the self-employed who often do not have the necessary documentation required to get traditional home loans. The interest rate is higher than the Standard Variable Rate and Low-Doc loans usually require mortgage insurance, adding to their cost.

LVR – LOAN TO VALUATION RATIO – The percentage relationship between the amount of the loan and the valuation or sales price (whichever is lower).

Designed by Rayantaban