Land
Includes not only the ground or soil, but also everything that is attached to the earth, whether by course of nature, such as trees and herbage, or by the hand of man, such as houses and other buildings. It includes not only the surface of the earth but everything under it and over it. Condominium Acts divide land horizontally thereby limiting the vertical ownership.
Land Titles System
This is a system of land registration under which the registrar, or master of titles, passes on the validity of the mortgage instrument, determines its legal effect, and the Government guarantees title.
Land-use Regulations
Municipal level regulations that restrict and regulate the types of buildings and uses allowed on a property.
Late Charge
An additional charge a borrower is required to pay as penalty for failure to pay a regular instalment when due.
Latent Defects
Present or potential imperfections or blemishes that are not readily evident.
Lawyer's Report (or Opinion) on Title
The Lawyer's Report outlines the mortgage details, including the results of the title search, tax details, fire insurance and any other related insurance coverage details, verification that title insurance has been obtained (if applicable), and any other relevant facts (i.e. easements, restrictions, liens).
Lead Lender (Mortgages)
A financial institution that heads up a financial consortium or syndicate of two or more lenders to provide funds for a mortgage.
Lease
A contract between landlord (lessor) and tenant (lessee) for the occupation or use of the landlord's interest in a property by the tenant for a specified period of time and for a specified consideration (rent).
Lease Guarantee Insurance
Insurance that protects the owner of leased commercial and industrial real estate from loss of rental income through the failure of a tenant to make rental payments.
Leasehold
An estate or interest in an estate in real property held by virtue of a lease for a term of years. A leasehold is considered personal property.
Leasehold Mortgage
A mortgage given by lessees on the security of their leasehold interests in the land.
Legal Description
The written geographical description of a property (metes and bounds) as described in the land register.
Legal Intent
This means that for an individual to be bound by a contract, that person has intended to create a commitment.
Lending Value
The property value for mortgage purposes. Usually, the lesser of
appraised value or sale price.
Lessee
Tenant.
Letter of Instruction
A letter of instruction will call for the lawyer to act for the lender and administer the distribution of the mortgage loan.
Liabilities
A business or a borrower's debts and legal obligations.
Lien
A claim on real or personal property for the payment of some undischarged debt or duty.
Life Estate or Interest
An interest in land that gives exclusive possession of the land for a lifetime only.
Limited-Restricted Appraisal
A type of appraisal that provides only an exterior inspection for transactions that are somewhat riskier than standard, e.g., in a new or unknown market, or in mixed use neighbourhoods but not high risk. Also known as a drive-by appraisal.
Liquidity
The readiness or ease with which an asset can be converted to cash.
Listing Agreement
The listing agreement is a contract between a seller and a real estate agent or broker. It sets out the conditions of the listing. A listing agreement generally includes, but is not limited to, the following: the length of the listing period, the desired sales price and the amount of the commission.
Loan Companies Act
A federal act regulating loan companies.
Loan Qualification
Also known as qualifying the borrower. Loan qualification is the process of analyzing the buyer's eligibility for financing.
Loan-to-Value Ratio (LTV)
The amount of the mortgage loan compared to the value of the property. This ratio is calculated by the lender prior to providing the loan. The results of this calculation help to determine whether or not the applicant will qualify for a loan and whether the application, if approved, will be for a conventional loan or a high ratio loan.
Long Term Investments
These investments are similar to fixed assets but typically do not depreciate in value.
Long Term Liabilities
Debts and obligations that must be repaid over a long period of time, e.g. mortgages.
Lump Sum Payment Option
A clause that may be included in an open mortgage allowing the borrower to prepay a portion of the principal if desired and in accordance with the specific terms of the contract.