Bear Island Land Co., Inc.

~Your Recreational Real Estate Professionals~

Dictionary of Terms

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Land
Real property; the surface of the earth and that which is affixed to it permanently, that which is below it, and the space above it; synonymous with "real property", "realty", and "real estate" Sometimes used to mean only the unimproved surface of the earth.
Lease
An agreement under which a tenant receives the possession and use of real property for a certain period of time and the landlord receives the payment to rent and/or the performance or other conditions.
Legal Description
A description recognized by law which is sufficient to locate and identify the property without oral testimony.
Lessee
The party who possesses a right or estate in realty, holding under a lease; also commonly referred to as the tenant.
Lessor
The party who conveyed a right or estate in realty to the lessee under a lease; commonly referred to as the landlord.
Lien
A right given by law to a creditor to have a debt or charge satisfied out of the real or personal property belonging to the debtor.
Lis Pendens
A public notice, filed against specific lands, that an action at law is pending that may affect the title to the land.
Listing
An agreement or contract of employment, either oral or written, whereby the owner authorizes the real estate broker to sell, exchange or lease real estate.
Loan Points
Amount charged by a lender to increase the loan yield. Usually a percentage such as 1% of the loan, which would equal one point.
Loan to Value (LTV) Ratio
Loan amount divided by the fair market value of the collateral, generally the appraisal value. For instance, a lender considering an 80% LTV on a home appraised at $250,000 would consider a loan request of $200,000. When considering a home equity loan, the lender will consider the combined LTV, assuming full disbursement of the equity loan. For instance, if a lender will consider a 90 percent combined LTV in the same example, he would consider a home equity loan request of $25,000 for combined debt that equals 90 percent of the appraisal value.

 

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Ely, Minnesota's most experienced Realtors, serving Buyers and Sellers in the Ely, MN area since 1995.