Dictionary – Labor – Lump-Sum

LABOR-MANAGEMENT RELATIONS ACT OF 1947 (TAFT-HARTLEY ACT) This law controls conditions under which an employer may pay any money to a representative of employees.

LACHES – To delay a person’s legal rights with the possibility of causing the negligent party’s lawsuit.  This can be caused by someone giving false information then denying it later after it had been accepted in GOOD FAITH

LAND – Informally referred to as “the dirt,” ownership from a point at the center of the earth, through the property boundaries to the sky above, including all things permanently attached by nature.

LAND BANKING – The activity of purchasing LAND that is not presently needed for use.

LAND BUILDING/RATIO  –  A  ratio of   relative VALUES of  the LAND  to IMPROVEMENTS.

LAND CONTRACT – Also known as LAND SALES CONTRACT, CONTRACT FOR DEED and INSTALLMENT CONTRACT – An INSTALLMENT CONTRACT for the sale of REAL PROPERTY. The seller has LEGAL TITLE (the DEED) until paid in full. The buyer has EQUITABLE TITLE (an EQUITY INTEREST) during the CONTRACT term.

LAND ECONOMICS – The branch of economics that concentrates upon the economic attributes of LAND and the economics of agriculture.

LAND LEASE – Where only the GROUND is covered by the LEASE.

LANDLOCKED PARCEL – A PARCEL of REAL PROPERTY completely surrounded by privately owned land, so that it has no permanent access to a public road.

LANDLORD – 1) A LESSOR; 2) One who RENTS PROPERTY to another;; 3) a PROPERTY owner who surrenders the right to use PROPERTY for a specific time in exchange for the receipt of RENT.

LANDMARK – A fixed object serving as a boundary mark for a TRACT of LAND.

LAND RESIDUAL TECHNIQUE – Used primarily in the APPRAISAL of COMMERCIAL PROPERTY, this is a CAPITALIZATION technique in which the NET OPERATING INCOME from the LAND is isolated and then capitalized to indicate the contribution of the LAND to the VALUE of the whole PROPERTY. The VALUE of the IMPROVEMENTS must be known to use this technique.

LAND SALE-LEASEBACK – The sale of LAND and simultaneous LEASING of it by the seller, who becomes the TENANT.

LAND SALES CONTRACT – Also known as LAND CONTRACT, CONTRACT FOR DEED and INSTALLMENT CONTRACT – An INSTALLMENT CONTRACT for the sale of REAL PROPERTY. The seller has LEGAL TITLE (the DEED) until paid in full. The buyer has EQUITABLE TITLE (an EQUITY INTEREST) during the CONTRACT term.

LANDSCAPE ARCHITECT – A professional who designs subdivisions, building SITES and other projects which require work on vegetation, installation of utilities drainage, grading and site improvements.

LAND TENEMENTS, AND HEREDITAMENTS – A phrase used in early English law to express all sorts of REAL ESTATE.

LAND TRUST – A TRUST created by the owner of REAL PROPERTY in which REAL ESTATE is the only ASSET in the TRUST. Not used in all states.

LAND USE INTENSITY – A measure of the extent to which a land PARCEL is developed in conformity with ZONING ORDINANCES.

LAND USE PLANNING – The long-term comprehensive planning by a POLITICAL UNIT to maximize the DEVELOPMENT of an AREA within its JURISDICTION and still allow for the health and safety considerations of the public.

LAND USE REGULATION – Government codes, ordinances and permit requirements intended to make the private use of LAND and natural resources conform to policy standards.

LAND USE SUCCESSION – A change in the predominant use of a AREA or NEIGHBORHOOD over time.

LAPSE – The termination or discontinuance of an INSURANCE POLICY due to non-payment of a PREMIUM.

LAPSED POLICY – A POLICY terminated for non-payment of PREMIUMS. The term is sometimes limited to a termination occurring before the POLICY has a cash or other SURRENDER value.

LARCENY-THEFT – The unlawful leading, taking, carrying or riding away of another person’s PROPERTY.

LAST CLEAR CHANCE RULE – Statutory modification of the CONTRIBUTORY NEGLIGENCE law which allows the CLAIMANT endangered by his or her own NEGLIGENCE to recover damages from a DEFENDANT if the DEFENDANT has a last clear chance to avoid the ACCIDENT but fails to do so.

LAST WILL AND TESTAMENT – Also known as WILL and TESTAMENT – A WILL generally to dispose of PERSONAL PROPERTY.

LATENT DEFECT – Any underlying defect which is not easily discoverable or readily apparent. The term implies knowledge of the defect by the property owner, but not by the BROKER or purchaser.

LATE PAYMENTS – A fee added to a bill after the expiration of a specific GRACE PERIOD. Such payments are intended to encourage timely payment of the bill.

LATH – Thin strips of  metal, wood or gypsum fastened to the ceiling JOISTS or wall STUDS to act as a plaster base.

LAW OF AGENCY – The legal theory which identifies and promotes the obligations attached to a PRINCIPAL AGENT relationship, particularly the obligations of the AGENT to the PRINCIPAL.

LAY OF THE LAND – Also known as TOPOGRAPHY – A reference to the relief features or surface of the earth.

LEAD-BASED PAINT – Considered a hazardous material which is potentially poisonous.  Though its presence is often difficult to determine because applications of LEAD-BASED PAINT may have been covered by more recent paint applications that are free of lead, its existence in PROPERTY is to be disclosed..

LEASE – Also known as RENTAL CONTRACT and  RENTAL AGREEMENT –  Any written or oral CONTRACT under which an owner of REAL PROPERTY agrees to transfer to a TENANT the rights of possession and QUIET ENJOYMENT, in exchange for the right to receive CONSIDERATION or RENT from the PROPERTY and the right to REPOSSESS the PROPERTY at the termination of the LEASE (REVERSION).

LEASE ASSIGNMENT – The transfer of the original LESSEE’S right and obligations to a new LESSEE for the balance of the LEASE TERM. There are no changes in the LEASE and the transfer usually requires the approval of the LESSOR.

LEASEBACK – Also known as SALE-LEASEBACK – A situation in which the owner of REAL PROPERTY sells the PROPERTY to an investor and then LEASES it back on a longterm basis. The seller-LESSEE receives the use of the PROPERTY while the buyer-LESSEE receives the ownership of the PROPERTY and both receive certain tax benefits.

LEASED FEE – The interest in REAL PROPERTY held by a LESSOR under a LEASE including the right to receive RENT or CONSIDERATION from the PROPERTY and the right to repossess the PROPERTY at the termination of the LEASE.

LEASEHOLD – The interest in REAL PROPERTY held by a LESSEE under a LEASE, including the rights of QUIET ENJOYMENT and possession.

LEASEHOLD ESTATE – Also known as LESS-THAN-FREEHOLD ESTATE –  An

ESTATE in LAND that has a predetermined time span, most commonly a LEASEHOLD.

LEASEHOLD IMPROVEMENTSFIXTURES attached to REAL ESTATE that are generally acquired or installed by the TENANT. Upon expiration of the LEASE, the TENANT can generally remove them, provided such action does not damage the PROPERTY or conflict with the LEASE.

LEASEHOLD VALUE – The VALUE of a TENANT’S interest in a LEASE, especially when the LEASE has a long remaining term and the RENT is BELOW MARKET.

LEASE OPTION – Also known as LEASE WITH OPTION TO PURCHASE – A LEASE under which the LESSEE has the option to purchase the LEASED REAL PROPERTY from the LESSOR before or at the expiration of the LEASE.

LEASE PURCHASE – A LEASE under which the LESSEE has contracted to purchase the LEASED REAL PROPERTY from the LESSOR at the expiration of the LEASE.

LEASE WITH OPTION TO PURCHASE – Also known as LEASE OPTION – A LEASE under which the LESSEE has the option to purchase the LEASED REAL PROPERTY from the LESSOR before or at the expiration of the LEASE.

LEGACY – A gift of PERSONAL PROPERTY given in a WILL. The person giving the legacy is the LEGATOR; the person receiving the legacy is the  LEGATEE.

LEGAL AGE – The official standard of majority upon which one is held legally responsible for one’s acts. CONTRACTS for the sale or lease of REAL ESTATE by a MINOR are VOIDABLE by the MINOR.

LEGAL CONCEPT OF LAND – The theory which states that PROPERTY ownership is not limited to the surface of the earth but extends from a point at the center of the earth through the PROPERTY boundaries to the sky above.

LEGAL DESCRIPTION – Used in a CONVEYANCE, the legal identification of REAL PROPERTY, which is accurate enough for a competent SURVEYOR to locate and identify that specific parcel of LAND.

LEGAL LIFE ESTATE – Based on statutory law rather than custom, an interest in REAL PROPERTY which is created by an operation of the law. DOWER, CUTESY and HOMESTEAD are legal life estates.

LEGAL NAME – The name one has for official purposes.

LEGAL NOTICE – Notification of others using the method required by law.

LEGAL PERSON – Any PERSON or ENTITY allowed to exist under the law, such as a POLITICAL UNIT,  PARTNERSHIP or CORPORATION.

LEGAL RESERVE – The minimum RESERVE which a company must keep to meet future CLAIMS and obligations as they are calculated under the state INSURANCE code.

LEGAL RESERVE LIFE INSURANCE COMPANY – A LIFE INSURANCE COMPANY operating under state insurance laws specifying the minimum basis for the RESERVES the company must maintain on its POLICIES.

LEGAL RESIDENCE – Generally one’s permanent home.

LEGAL TITLE – A collection of rights of ownership that are defined or recognized by law or that could be successfully defended in a court of law.

LEGATEE – One who receives PROPERTY by WILL.

LEGATOR – One who gives PROPERTY by WILL.

LENDER – Also known as CREDITOR – A person to whom money is owed.

LENDER’S POLICY – Also known as ALTA or ATA POLICY – Usually paid for by the borrower , a TITLE INSURANCE POLICY issued for the benefit of a lender as well as any future holder of the LOAN.

LESSEE – Also known as RENTER and TENANT – The person who receives a LEASE.

LESSOR – Also known as LANDLORD – The person who gives a lease.

LESS-THAN-FREEHOLD ESTATE – Also known as LEASEHOLD ESTATE – An ESTATE in LAND that has a predetermined time span, most commonly a LEASEHOLD.

LET – To RENT a PROPERTY to a TENANT.

LETTER OF COMMITMENT – Generally specifying the terms of the LOAN and setting a date for the CLOSING, official notification to a BORROWER of the LENDER’S intent to grant a LOAN.

LETTER OF CREDIT – An arrangement, with specified CONDITIONS, whereby a bank agrees to substitute its CREDIT for a customer’s.

LETTER OF INTENT – The expression of a desire to enter into a CONTRACT without actually doing so.

LEVEL COMMISSION SCALE – A COMMISSION scale providing for payment of COMMISSIONS at the same rate every year the POLICY is in force.

LEVEL PAYMENT MORTGAGE – A MORTGAGE in which the periodic payments are the same throughout the TERM of the LOAN. Part of each payment is applied toward the INTEREST; the remainder is used to reduce the PRINCIPAL.

LEVEL PREMIUM – A PREMIUM which remains unchanged throughout the life of a POLICY.

LEVEL PREMIUM LIFE INSURANCELIFE INSURANCE for which the PREMIUM remains the same from year to year. The PREMIUM is more than the actual cost of protection during the earlier years of the POLICY and less than the actual cost in the later years. The building of a RESERVE is a natural result of LEVEL PREMIUMS. The overpayments in the early years, together with the INTEREST that is earned, serve to balance out the underpayments of the later years.

LEVERAGE – The use of borrowed money to finance a REAL ESTATE purchase, typically with the buyer making a small cash investment and borrowing the bulk of the funds.

LEVY – To legally impose or collect that which is due.

LIABILITY – 1) What a person owes; 2) any legally enforceable obligation.

LIABILITY INSURANCE – 1) INSURANCE covering the POLICYHOLDER’S legal LIABILITY resulting from injuries to other persons or DAMAGE to their PROPERTY; 2) provides PROTECTION for the INSURED against LOSS arising out of legal liability to third parties; 3) protection for a PROPERTY owner from CLAIMS arising from injuries or DAMAGES to other people or property.

LIABILITY LIMITS – The stipulated sum or sums beyond which an INSURANCE company is not liable to protect the INSURED.

LIABILITY WITHOUT FAULT – Principle on which WORKERS COMPENSATION is based, holding the employer absolutely LIABLE for occupational injuries or disease suffered by workers, regardless of who is at fault.

LIABLE – Responsible or obligated.

LICENSE – The permission given to use REAL PROPERTY without any implication of an EASEMENT right. Unlike an EASEMENT, a LICENSE may be evoked. The person granting the permission is the LICENSOR, and the person receiving the permission is the LICENSEE.

LICENSE AND PERMIT BOND – Type of SURETY BOND guaranteeing that the person BONDED will comply with all laws and regulations that govern his or her activities.

LICENSED APPRAISER – Generally an APPRAISER who meets certain state requirements but lacks the experience or expertise of a certified APPRAISER.

LICENSEE – 1)A licensed salesperson or BROKER; 2) one who holds a REAL ESTATE LICENSE

LICENSE LAWS – Laws that govern the activities of REAL ESTATE SALESPERSONS.

LICENSING EXAMINATION – A written test given to a prospective REAL ESTATE BROKER or SALESPERSON to determine ability to represent the public in a REAL ESTATE transaction.

LICENSOR – A person granting a LICENSE.

LIEN – Any legal monetary CLAIM by a CREDITOR on the PROPERTY of a DEBTOR. All LIENS are ENCUMBRANCES, although not all ENCUMBRANCES are LIENS.

LIENHOLDER – One who holds or benefits from a LIEN.

LIEN, JUNIOR – A LIEN that will be paid after earlier LIENS have been paid.

LIEN THEORY STATES – Those states which treat a DEED OF TRUST or MORTGAGE only as a secured interest in REAL PROPERTY with the TITLE retained by the borrower.

LIFE ANNUITY – 1) A CONTRACT that provides an INCOME for life; 2) a series of payments under which payments, once begun, continue throughout the remaining lifetime of the ANNUITANT but not beyond.

LIFE ANNUITY WITH TEN YEARS CERTAIN – An ANNUITY which pays an INCOME to the ANNUITANT for as long as he or she lives, but if death occurs within ten years after the ANNUITY payments begin, payments are continued to a named BENEFICIARY for the remainder of the ten years.

LIFE CYCLE OF A NEIGHBORHOOD – Also known as INTEGRATION, EQUILIBRIUM, DISINTEGRATION – The APPRAISAL principle, which maintains that neighborhoods can form, exists, and decay in relatively predictable patterns.

LIFE ESTATE – An interest in REAL PROPERTY for the lifetime of a NATURAL PERSON, an indefinite although limited time. LIFE ESTATES may be either CONVENTIONAL or LEGAL LIFE ESTATES.

LIFE EXPECTANCY – The average number of years of life remaining for a group of persons of a given age according to a particular MORTALITY TABLE.

LIFE INCOME OPTIONLIFE INSURANCE settlement option in which the POLICY proceeds are paid during the lifetime of the BENEFICIARY. A certain number of guaranteed payments may also be payable.

LIFE INSURANCEINSURANCE providing for payment of a specified amount on the INSURED’S death, either to his or her ESTATE or to a designated BENEFICIARY or, in the case of an ENDOWMENT policy, to the POLICYHOLDER at a specified date.

LIFE INSURANCE IN FORCE – The sum of the FACE AMOUNTS, plus DIVIDEND additions, of LIFE INSURANCE POLICES outstanding at a given time. Additional amounts payable under ACCIDENTAL DEATH or other special provisions are not included.

LIFE INSURANCE PROGRAMMING – Systematic method of determining the INSURED’S financial goals, which are translated into specific amounts of LIFE INSURANCE, then periodically reviewed for possible changes.

LIFE OF LOAN CAP – A contractual limitation on the maximum INTEREST RATE that can be applied to an ADJUSTABLE RATE MORTGAGE during the TERM of the LOAN.

LIFE TENANT – The person who owns a LIFE ESTATE, usually the person on whose lifetime the ESTATE is based.

LIFETIME DISABILITY BENEFIT – 1) DISABILITY INCOME payable for the life of the INSURED as long as he is TOTALLY DISABLED; 2) a BENEFIT to help replace INCOME lost by an INSURED person as long as he/she is TOTALLY DISABLED, even for a lifetime.

LIKE-KIND PROPERTYPROPERTY having the same nature.

LIMITED APPRAISAL – An APPRAISAL of REAL ESTATE under and resulting from invoking the DEPARTURE PROVISION OF USPAP.

LIMITED LIABILITY – 1) The restriction of one’s potential LOSSES to the amount invested; 2) The absence of PERSONAL LIABILITY.

LIMITED OCCUPANCY AGREEMENT – Usually prior to closing, an agreement that allows a prospective buyer to obtain possession under a temporary arrangement,.

LIMITED PARTNERS – Members of a LIMITED PARTNERSHIP.

LIMITED PARTNERSHIP – An INVESTMENT SYNDICATE in which most members are called LIMITED PARTNERS, and have LIMITED LIABILITY for the LOSSES of the PARTNERSHIP; they do not share in the MANAGEMENT. There must be at least one GENERAL PARTNER who manages the PARTNERSHIP and has unlimited LIABILITY for its LOSSES.

LIMITED PAYMENT LIFE INSURANCEWHOLE LIFE INSURANCE on which PREMIUMS are payable for a specified number of years or until death if death occurs before the end of the specified period.

LIMITED POLICY – A CONTRACT which covers only certain specified diseases or ACCIDENTS.

LINCOLN GRADUATE CENTER – An organization that offers REAL ESTATE education, especially APPRAISAL courses.

LINEAL FOOT – A measure of one foot along the ground in a straight line.

LINE OF CREDIT – An arrangement whereby a financial institution promises to lend up to a certain amount without the need to file another application.

LIQUIDATE – 1) To retire DEBTS; 2) to dissolve a business.

LIQUIDATED DAMAGES – An amount agreed upon in a CONTRACT that one party will pay the other in the event of a BREACH OF THE CONTRACT.

LIQUIDATION – Dissolving a company by selling its ASSETS for cash.

LIQUIDATION VALUE – The amount a PROPERTY would bring under an immediate sale minus transaction COSTS.

LIQUIDITY – Ease of converting ASSETS to cash.

LIQUOR LIABILITY LAW – Also known as DRAMSHOP LAW – Law that imputes NEGLIGENCE to the owner of a business that sells liquor in the case that an intoxicated customer causes injury or property damage to another person. Usually excluded from general LIABILITY POLICIES.

LIS PENDENS – The recorded NOTICE of a pending lawsuit that will affect any REAL PROPERTY against which it has been recorded.

LISTING – 1) A record of PROPERTY for sale by a BROKER who has been authorized by the owner to sell; 2) a written engagement CONTRACT between a PRINCIPAL and an AGENT which authorizes the AGENT to perform services for the PRINCIPAL involving the latter’s PROPERTY; 3) the PROPERTY so listed.

LISTING AGREEMENT – Also known as LISTING CONTRACT – An employment CONTRACT for personal services between the BROKER and the employer. The employer in most LISTING CONTRACTS is the person wanting to dispose of some REAL PROPERTY for whom the BROKER is employed to find a READY, WILLING AND ABLE buyer.

LISTING BROKER – The LICENSED REAL ESTATE BROKER who secures a LISTING of the PROPERTY.

LISTING CONTRACT – Also known as LISTING AGREEMENT – An employment CONTRACT for personal services between the BROKER and the employer. The employer in most LISTING CONTRACTS is the person wanting to dispose of some REAL PROPERTY for whom the BROKER is employed to find a READY, WILLING AND ABLE buyer.

LITIGATION – The act of carrying on a lawsuit.

LITTORAL – A reference to water abutting the shore of an ocean, sea, or lake in water law,.

LIVERY OF SEIZING – The symbolic transfer of ownership; in former times signified by the seller giving the buyer a handful of earth or a bundle of branches; subsequently, the rights of ownership are often referred to as THE BUNDLE OF RIGHTS.

LIVING BENEFITS RIDER – A RIDER that allows INSUREDS who are terminally ill or who suffer from certain catastrophic diseases to collect part of their LIFE INSURANCE BENEFITS before they die, primarily to pay for the care they require.

LIVING TRUST – Also known as an INTER VIVOS TRUST – An ESTATE PLANNING device created and funded during the lifetime of the REAL PROPERTY owner.

LIVING WILL Though not recognized in all states, a new type of WILL in which the maker of the WILL asks that it be read prior to their death and that no heroic effort be made to prolong their life.

LLOYD’S OF LONDONINSURANCE marketplace where BROKERS, representing clients with insurable RISKS, deal with Lloyd’s UNDERWRITERS, who in turn represent investors. The investors are grouped together into SYNDICATES that provide capital to INSURE the RISKS.

LOAD-BEARING WALL – Also known as BEARING WALL – Any wall that supports a vertical load in addition to its own weight.

LOADING – Also known as EXPENSE LOADING – The amount that must be added to the pure PREMIUM for profit, expenses and a MARGIN for contingencies.

LOAN APPLICATION – Document required by a lender prior to issuing a LOAN COMMITMENT.

LOAN APPLICATION FEE – A charge required by a LOAN originator to be paid by the borrower to cover the credit report, PROPERTY APPRAISAL and other incidental expenses associated with UNDERWRITING the LOAN.

LOAN COMMITMENT – An agreement to lend money, generally of a specified amount, at specified terms at some time in the future.

LOAN ORIGINATION FEE – A one-time charge made by a lender for the expenses incurred in granting a LOAN.

LOAN PACKAGE – The collection of documents associated with a specific LOAN APPLICATION.

LOAN-TO-VALUE RATIO – The percentage of the total VALUE of a PROPERTY which a lender will fund. VA-GUARANTEED LOANS offer the highest LOAN-TO-VALUE RATIO (100%).

LOCKED-IN INTEREST RATE – The RATE promised by a lender at the time of LOAN APPLICATION. Though there may be qualifications or contingencies that allow the lender to charge a higher rate, the promise is a legal commitment of the lender. On INCOME PROPERTY loans, a lock-in generally requires a COMMITMENT FEE from the loan applicant.  On home LOANS, the lock-in is customarily provided for 1% of the amount borrowed, though often it is free of charge.

LONDON INTERBRAIN OFFERED RATE (LIBOR) – The rate that international banks dealing in Eurodollars charge each other for large LOANS. Some domestic banks use this rate as an INDEX for ADJUSTABLE RATE MORTGAGES.

LONG-TERM CAPITAL GAIN – Taxable INCOME derived from the sale of a CAPITAL ASSET which was owned for more than six months.

LONG-TERM CARE – The continuum of broad-ranged maintenance and health services to the disabled, chronically ill or retarded. Services may be provided on an inpatient (rehabilitation facility, nursing home, mental hospital), outpatient or at-home basis.

LONG-TERM DISABILITY INCOME INSURANCEINSURANCE issued to an employer, group or individual to provide a reasonable replacement of a portion of an employee’s EARNED INCOME lost through serious and prolonged illness or injury during the normal work career.

LONG-TERM LEASE – Generally, a COMMERCIAL LEASE of five years or longer or a RESIDENTIAL LEASE longer than one year.

LOSS – An event for which INSURANCE pays.

LOSS ADJUSTMENT EXPENSE – Expenses incurred in the process of evaluating, defending and paying CLAIMS.

LOSS AVOIDANCE – A RISK management technique whereby a situation or activity that may result in a LOSS for a firm is avoided or abandoned.

LOSS CONTROL – Any conscious action or decision not to act intended to reduce the frequency, severity or unpredictability of accidental LOSSES.

LOSS EXPENSE – ALLOCATED – Handling expenses, such as legal or independent adjuster fees, paid by an INSURANCE COMPANY in settling a CLAIM which can be definitely charged to that particular CLAIM.

LOSS EXPENSE – UNALLOCATED – Salaries and other expenses incurred in connection with the operation of a CLAIM department of an INSURANCE carrier which cannot be charged to individual CLAIMS.

LOSS OF USE – A VALUE assigned to not having DAMAGED PROPERTY available, e.g., the cost of renting a replacement vehicle while one’s car is being repaired.

LOSS PAYABLE CLAUSE – Means of protecting a MORTGAGEE’S interest in PROPERTY by directing the INSURER to make a LOSS payment to the MORTGAGEE in the event of a loss.

LOSS PREVENTION – Any measure which reduces the probability or frequency of a particular LOSS but does not eliminate completely all possibility of that LOSS.

LOSS RATIO – A ratio calculated by dividing CLAIMS into PREMIUMS. It may be calculated in several different ways, using paid PREMIUMS or earned PREMIUMS and using paid CLAIMS with or without changes in claim RESERVES and with or without changes in active reserves.

LOSS RESERVE – The amount set up as the estimated cost of a claim.

LOSS RESERVE DEVELOPMENT – How the latest estimate of an INSURANCE company’s CLAIM obligations compares to an earlier projection.

LOT – Also known as PARCEL – A specific portion of a larger TRACT of LAND.

LOT AND BLOCK METHOD – Also known as RECORDED PLAT METHOD – A legal description based on reference to the lot and block numbers of a recorded SUBDIVISION map.

LOT LINE – A line bounding a LOT as described in a PROPERTY SURVEY.

LOW-BALL OFFER – An offer from a prospective PROPERTY buyer that is much lower than the LISTING price. Such as offer may indicate the buyer’s belief that the PROPERTY will not attract many good offers and that the asking price is unrealistic and possibly that the buyer is interested in the PROPERTY only if it can be purchased at a bargain price.

LOW-INCOME HOUSING – Housing that is eligible for special tax credits of up to 9% of their cost under the 1986 Tax Act. Strict rules must be followed concerning certification, TENANT qualification and project financing.

LUMP-SUM DISTRIBUTION Payment within one taxable year of the entire balance payable to an employee from a TRUST which forms part of a qualified pension or employee ANNUITY plan on account of that person’s separation from service, attainment of age fifty-nine or death.

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