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The earth's surface, plus that part of the earth under (mineral rights) and over (air rights) the surface.


Land Contract


Also known as a "purchase money mortgage" or an "installment contract", a land contract allows for the sale of real estate with the transfer of title upon payment in full. Land contracts are beneficial to Sellers because it allows them to reach a larger market of less qualified buyers. Buyers usually benefit from the smaller down payment required by Sellers using this financing alternative. Buyers can also afford more property using this sales method.


Land Lease


See Ground Lease


Lead Based Paint


Lead-based paint, lead pipe and lead composite solder were common construction materials used well into the 1970Ős and 1980Ős until banned by the federal government. Harmful lead levels can sometimes be found in drinking water, paint, soil and dust. The renovation of older homes can bring lead out into the environment, and care should be taken to identify potential sources of lead contamination.




A legal contract for the use of real estate for a specified term and often for a specified use. The contract can have provisions that allow for sub-leases, or it may exclude that right.


Lease With the Option to Buy


An agreement to lease a property is at times combined with a option agreement to give a buyer the opportunity to purchase a property at specified terms for a specified period of time. Option funds paid to a seller for the right to option a property are usually not refundable. Credit is sometimes given against the purchase price for a portion of the rental paid during the leased period. Exclusive options severely restrict a sellers ability to market a property and are normally given for short periods or when the compensation justifies the risk of lost marketing time.


Legal Description


A traditional identification of real property that is most often made by a rectangular survey; by metes and bounds or by a recorded plat.


Legal Interest Rate


The interest rate that can be charged in a legally binding contract is often governed by State law. The legal rate is the default interest rate used when none is specified in a contract, and it is the highest rate that can be imposed without creating a voidable or invalid contract.




Is a "cloud" on the clear title to a real property that is usually created to secure payment for a debt.  A Mechanic's Lien is place by someone who has worked on a property and not been paid.  Mortages, taxes and other legal filings can establish liens.  Liens generally need to be paid in order to provide marketable title to a buyer when a property is sold.


Limited Partnership


Investors and one or more real estate experts (general partners) pool their limited funds in a limited partnership to purchase a property that requires a large capital investment. In a limited partnership an investor gains the benefit of having a maximum risk of loss but gives up control of partnership decisions to the general partner.


Loan-to-Value Ratio


The home loan amount divided by the estimated value of the property. Financial institutions typically limit their loans to the 80% - 95% of value range.


Lock-in Rate


Firm written commitments are made by some financial institutions for a fixed mortgage loan rate. Time limits of 30 days or more are common for such "lock-in" periods. Commitments are made subject to final loan approval.


Life-of-Loan Cap


An overall upward limit or ceiling on the interest rate that can be charged a mortgagee (borrower) on a loan during it's life. While intended for consumer protection caps can be written to be very high, and benefit the financial institution much more than limit the negative financial impact to a consumer.


Listing Agent


The real estate agent who has signed the listing contract with the principal for the sale of a property. The listing agent represents the seller in a transaction and is responsible for marketing the listed property during the term of the agreement.


Listing Agreement


A legal document (contract) that spells out the relationship established between a seller of a parcel of real estate and a real estate broker. The document has been described as an employment contract that is fulfilled upon the procurement of a ready, willing and able buyer by the broker. In reality, the transaction normally has to close before the broker earns the commission.


For a listing agreement to be valid it must be signed by both parties and meet with other Statute of Frauds requirements.


There are several types of listings possible. Real estate agents want an "exclusive right-to-sell" listing agreement. This type of agreement give the broker the sole and absolute right to sell, exchange or lease a property.


An "exclusive agency" listing contract leaves the seller the right to sell a property himself without having to pay a commission. No other agents, however, are permitted.


Legal counsel should always be employed when dealing with matters of law.



Copyright © 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.