lally column
A circular pipe filled with concrete that supports girders and beams.

laminate
Plastic material used to seal countertops. Also known by the trademark name Formica.

laminated plastic
Sheets of paper or textile, soaked with a synthetic resin, sandwiched between layers of the resin to make a rigid sheet with glossy surfaced covering.

lanai
A porch-like room or open-sided living room commonly found in homes in warm climates.

landing
A platform in a flight of stairs between two stories; also the terminating or the changing of a stairway.

landscape
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 and is trained in horticulture, design, and planning.

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.

lap siding
A type of siding composed of horizontal boards with the bottom of one piece overlapping the top of the piece below it.

late charge
The penalty a borrower must pay when a payment is made a stated number of days. On a first trust deed or mortgage, this is usually fifteen days.

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, termite damage, or lead paint.

latex paints
Water-based paints, sometimes called “vinyl” or “acrylic” paints; cleanup and thinning are done with water.

lead
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.

leader
A pipe that carries rainwater from the gutters to the ground, sewers, or wells.

lease
A written agreement between the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.

leasehold
The limited interest in a property held by a tenant; primarily the right to inhabit it for a specified period of time. At the end of the lease, the property reverts to the owner or landlord.

leasehold estate
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.

leasehold interest
The limited interest in a property held by a tenant; primarily the right to inhabit it for a specified period of time. At the end of the lease, the property reverts to the owner or landlord.

lease option
An alternative financing option that allows home buyers to lease a home with an option to buy. Each month's rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.

lease purchase
A type of delayed closing. The lease purchase contract sets the closing date and provides remedies to the seller if the buyer defaults.

legal blemish
Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.

legal description
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.

lender
A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as "lenders."

lessee
A person to whom property is rented under a lease.

lessor
A person who rents property to another under a lease.

letter of intent
A formal statement that the buyer intends to purchase the property for a certain price on a certain date.

leverage
The use of a small amount of cash (for example, a 5 percent down payment) to buy a piece of property.

levy
The amount of money a governing body certifies to be raised from the property tax.

liabilities
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. It is usually part of a homeowner’s insurance policy.

LIBOR (London Interbank Offered Rate)
The interest rate charged among banks in the foreign market for short-term loans to one another. A common index for ARM loans.

lien
A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.

life 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 mortgage.

life-cycle cost analysis
An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.

lifetime rate cap
In an adjustable rate loan (ARM), a maximum interest rate or "ceiling" that may not be exceeded under any circumstances over the entire life of the loan.

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.

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.

lintel
A horizontal piece over a door or window that carries the weight of the structure above it.

liquid asset
A cash asset or an asset that is easily converted into cash.

liquidated damages
A sum of money specified in the purchase contract to be paid by one party to the other in the event of a breach of contract.

liquidity
The ability to sell an asset at a price close to its true value and convert it into cash in a short period of time.

listing
A piece of property placed on the market by a listing agent.

listing agent
A broker or sales agent who has contracted with a seller to handle the marketing and sale of a piece of property.

listing broker
A real estate broker responsible for the listing of the property and representing the interest of the seller. (Also called a listor or seller's broker.)

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
A sum of borrowed money (principal) that is generally repaid with interest.

Loan Application
An initial statement of personal and financial information required to apply for a loan. 

Loan Application Fee
Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

loan commitment
A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.

loan officer
Also referred to by a variety of other terms, such as lender, loan representative, loan "rep," account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.

loan origination
How a lender refers to the process of obtaining new loans.

loan origination fee
The lender requires a loan origination fee (or points) to cover the direct costs of arranging the loan.

loan servicing
After you obtain a loan, the company you make the payments to is "servicing" your loan. They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs and assumptions, and provide a variety of other services.

loan-to-value (LTV)
The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).

loan term
The time set by a lender for a buyer to pay a mortgage. Most conforming loans have 30-year or 15-year terms. In the case of balloon loans, payments are based on the amortization period and a final payment due at term.

loan type
The type of loan determines its borrowing limit, down payment requirements, and qualifying rules. Available loan types include conforming, jumbo, FHA, and VA.

local improvement district (LID)
A legal district established by state law to benefit a specific area. Districts issue bonds to finance improvements such as sidewalks and sewer systems, then levy assessments on real estate in the affected area to repay funds.

lock-in
An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.

lock-in period
The time period during which the lender has guaranteed an interest rate to a borrower.

loft
A living space not partitioned into rooms or a small space built above a larger room.

log cabin
Homes constructed of rough-hewn timbers; a standard form of housing during the settlement of the United States.

louvers
Slatted panels mounted in the upper portion of a gable wall to provide attic ventilation.

low density
A low concentration of housing units in a specific area.

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.

low-documentation loan
A mortgage that requires only minimal verification of income and assets.

low-emissivity
A coating or film applied between panes of glass in high-efficiency glazing; abbreviated "low-E."

lowball offer
An offer made to a seller that is substantially below market value.