Learning Center Glossary
| Term | Definition |
|---|---|
| Lease | A contract in which one party (the tenant) pays the other (the landlord) rent in exchange for the possession and use of real estate. |
| Lease/Option | A lease that includes an option to purchase the leased property during the term of the lease. |
| Lease/Purchase Contract | A variation on the lease/option, in which the parties sign a purchase contract (instead of an option) and the prospective buyer leases the property for an extended period before closing. |
| Liability | A debt or obligation; legal responsibility. |
| Lien | A claim upon a piece of property for the payment or satisfaction of a debt or obligation. |
| Listing | A contract between a real estate broker and a property seller, by which the seller makes the broker his or her agent in order to put the property up for sale. |
| Loan Origination Fee | The fee charged by a lender to prepare all the documents associated with a mortgage. |
| Loan-to-Value Ratio (LTV) | The relationship between the loan amount and either the sales price or the appraised value of the property (whichever is less), expressed as a percentage. |
| Lock-In | Agreement where a lender guarantees a loan applicant a particular interest rate if the transaction closes within a specified period. |