Title Insurance and Closing Services Since 1954
Terms Defined
The Real Estate Industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. Wayne County Title Agency, Inc. has compiled the following Definition of Terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
Land Contract
An installment contract for the sale of land whereby the seller (vendor) holds legal title and the buyer (vendee) has equitable title until the sales price is paid in full. By Ohio Statute, this contract is to be recorded with the County Recorder in the same county in which the land is located.
Lead Based Paint Disclosure- Federal Form
This form is required only if a residence was built prior to 1978. The federal government requires that you disclose any knowledge of lead based paint on the premises, as well as providing to your buyer a federally published booklet regarding the potential hazards of lead in the home.
Lease
An agreement by which an owner of real property (lessor) gives the right of possession to another (lessee), for a specified period of time (term) and for a specified consideration (rent).
Leasehold
The right to possession and use of land for a fixed period of time. The lease is the agreement which creates the right. The person who has the leasehold is the tenant or lessee. The person who grants the leasehold is the lessor or landlord.
Legal Description
A property description which by law is sufficient to locate and identify the parcel of real property.
Lender
Any person or entity advancing funds which are to be repaid. A general term encompassing all mortgagees.
Lender’s Policy
A title insurance policy which insures the validity, enforceability and priority of a lender’s lien. This policy does not provide protection for the owner.
Lessee
A party to whom a leasehold (the right to possession) is given in return for a consideration (rent).
Lessor
A landlord; one who gives a leasehold to a lessee.
Lien
A claim or charge on property of another for payment of some debt, obligation, or duty.
Lien Waiver or Waiver of Liens
A document signed by the general contractor, each subcontractor, and each materialman of a construction project whereby the signators waive their right to mechanics’ liens on the land involved in that particular project.
Life Estate
An individual’s right to the use and occupancy of real property for life.
Limited Liability Company or LLC
Is a relatively new business entity, at least in the United States. Its basic features are that its owners have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation, and its income and losses are normally passed through to the owners as if it were a partnership. It is probably most like a limited partnership, without the requirement that there be at least one general partner liable for the debts and obligations of the partnership. An LLC is a statutory creation. That is, unlike general partnerships which developed under common law, an LLC, like a corporation, is created by filing a document (usually called Articles of Organization) with an officer designated by state law.
Limited Warranty Deed
Is a deed that only warrants the title for the time in which the seller owned the property. In other words, a Limited Warranty Deed is a deed in which the property transferred is warranted to be free of all liens and encumbrances made by or through the Grantor, but not otherwise.
Link
In surveying, a length of 7.92 inches.
Links
See Chains and links.
Lis Pendens
A legal notice that there is litigation pending relating to the land and a warning that anyone obtaining an interest subsequent to the date of the notice may be bound by the judgment.
LLC
See Limited Liability Company
Loan Policy or Mortgage Policy or Mortgagee Policy
A title insurance policy in which the insurer insures the mortgagee against loss it may suffer because the title is not vested as stated in the policy and insures the validity and priority of the mortgage lien over any other lien not excepted to in the policy.
Lock-In
A guarantee, for which you are usually charged a fee, that you will receive a specific rate when you close your mortgage.
Loss Payable Clause
A provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear, usually the owner and the mortgage lender.
Lot
Generally, any portion or parcel of real property. Usually refers to a portion of a subdivision.