Latent Defect:
Unknown property defect not readily apparent to the buyer, but may surface later.

Lender's Inspection Fee:
Fee charged by a lender to inspect the property to verify that required repairs are completed.

Lien:
The legal right to take and hold or sell the property of a debtor as security or payment for a debt.

Liquidate:
Sell an asset and receive cash.

Listing Agent:
The sales professional who has signed an agreement to exclusively market the seller's property.

Listing Agreement:
Formal contract signed by the seller and the real estate sales professional at the time the seller places a property on the market.

Listing Commission:
The percentage of the final home price sellers agree to pay a sales professional to list and sell their property. Also referred to as Listing Fee.

Listing Fee:
The percentage of the final home price sellers agree to pay a sales professional to list and sell their property. Also referred to as Listing Commission.

Loan Commitment:
A written offer or notification from a lender stating the terms under which it agrees to lend money to a home buyer. Also known as a Commitment Letter.

Loan Processing:
Verifying financial information provided by a borrower to a lender, packaging the information on standardized forms, and submitting the package to an underwriter for formal loan approval.

Loan Term:
Maximum length of time within which a loan must be repaid.

Local MLS:
The Multiple Listing Service (MLS) in a particular real estate market or city.

Lock-in:
A written agreement in which the mortgage lender guarantees a specified interest rate if the loan closes within a set time.

Lot Acquisition:
Purchase of a lot for building a house on it.

Lot Survey:
The report that includes a detailed map of an area of land, including its boundaries, area and elevation, using geometry and trigonometry to measure angles and distances.

Lot-Land:
An area of land with fixed boundaries.

Low or No Down Mortgages:
Mortgages that require little or no cash down payment.

Definitions are intended to be informational only. Please be advised that real estate practices vary from state to state and market to market. The information contained herein does not constitute legal advice. It is recommended that you consult with a qualified real estate attorney who can advise you specifically with respect to the requirements in your market.