"My name is Roger and I seen a tv commercial for CRN. I called there and within 3 weeks I had bought my home. I had been looking for 2 years. I had just about given up."

- Roger G

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Glossary of Terms


We have compiled a list of the most common real estate terms and definitions to assist you in your search for a home. Whether you are a buyer or seller of real estate it is easy to get confused by the language used in real estate transactions. With our comprehensive real estate glossary you can easily navigate through the complicated world of buying and selling a home.

Click in the letter below to see the glossary

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L


lease purchase
A contract in which an owner leases his house (usually for one to five years) to a tenant for an increased monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance, with the incremental rent increase being used to form a down payment.
lender
A bank, savings institution, or mortgage company that offers home loans.
letter of intent
A formal statement that a buyer intends to purchase a property for a certain price on a certain date.
liabilities
A borrower's debts and financial obligations.
lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienor and the person who has the benefit of the lien is referred to as the lienee.
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.
listing
A piece of property placed on the market by a listing agent.
loan application
The first step toward submitting a home loan requires the borrower to itemize basic financial information.
loan origination fee
A one-time fee charged by a lender fee that covers lender or mortgage broker's administrative costs to prepare the documents associated with mortgage and/or profit in processing a loan. Note: Application, Administration and Processing Fees are essentially the same thing and may be charged in addition to this fee.
loan-to-value ratio
The ratio, expressed as a percentage, of the amount of a loan (numerator) to the value or selling price of real property (denominator). Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks, savings and loans, or government-insured loans are set by statute.