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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 and over it. Condominium Acts divide land horizontally thereby limiting the vertical ownership.

Land Title System 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 are Municipal level regulations that restrict and regulate the types of buildings and uses allowed on a property.

Late Charge is an additional charge a borrower is required to pay as penalty for failure to pay a regular instalment when due.

Latent Defects are present or potential imperfections or blemishes that are not readily evident.

Lawyer's Report (or Opinion) on Title 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) is a financial institution that heads up a financial consortium or syndicate of two or more lenders to provide funds for a mortgage.

Lease is a contract between landlord  (lessor) and tenant (lessee) for the occupation or use of the landlord's interest in property byt the tenant for a specified period of time and for a specified consideration (rent).

Lease Guarantee Insurance is 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 is 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 is a mortgage given by lessees on the security of their leasehold interests in the land.

Legal Description is the written geographical description of a property (metes and bounds) as described in the land register.

Legal Intent means that for an individual to be bound by a contract, that person has intended to create commitment.

Lending Value is the property value for mortgage purposes. Usually the lesser of the appraised value or sale value.

Lessee means tenant.

Letter of Instruction will call for the lawyer to act for the lender and administer the distribution of the mortgage loan.

Liabilities is a business' or borrower's debts and legal obligations.

Lien is a claim on real or personal property for the repayment of some undischarged debt or duty.

Life Estate or Interest is an interest in land that gives exclusive possession of the land for a lifetime only.

Limited-Restricted Appraisal is a type of appraisal that provides only the 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 drive-by appraisal.

Liquidity is the readiness or ease with which an asset can be converted to cash.

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 mount of the commission.

Loan Companies Act is a federal act regulating loan companies.

Loan Qualification is also known as qualifying the borrower. Loan qualification is the process of analyzing the buyer's eligibility for financing.

Loan to Value (LTV) is one of key risk factors used by lenders to assess the risk of default on a mortgage. It is proportion of loan amount (secured by a property) to the value of given property. So 150,000 loan secured by 200,000 property would yield 75% LTV.

Long Term Investments are similar t fixed assets but typically do not depreciate in value.

Long Term Liabilities are debts and obligations that must be repaid over a long period of time, e.g. mortgages.

Lump Sum Payment Option is 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.


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Walter Pawlowski Ontario Mortgage Agent M11002486