The Real Estate
Encyclopedia: K-O

In real estate investing, Leverage refers to the use of borrowed funds to acquire property, allowing an investor to control a large asset with a relatively small amount of their own cash. Financing magnifies the purchasing power of the investor. Leverage can increase...

In real estate finance, a Level Payment Mortgage is a loan in which the borrower makes equal periodic payments, usually monthly, over the life of the loan. Each payment includes both principal and interest. As the loan balance declines, the portion of each payment...

In real estate transactions, a Letter of Intent is a written statement expressing a prospective buyer’s, lessee’s, or developer’s interest in a property. It outlines general terms and intentions but is not a binding offer. A letter of intent creates no legal...

In real estate, a Lessor is the party who grants the right to possess and use real property to another through a lease agreement. The lessor is usually the property owner and receives consideration, typically rent, in return. The lessor retains ownership of the...

In real estate, a Lessee is the party who receives the right to possess and use real property under a lease agreement. In exchange for this right, the lessee agrees to pay consideration, usually in the form of rent. The lessee is commonly referred to as the tenant and...

In real estate, a Legal Description is a precise method of identifying the location and boundaries of a parcel of land in a manner that is legally acceptable and enforceable in a court of law. It uniquely describes the property so that it can be distinguished from all...

In real estate, a Lease Purchase Option is a lease agreement that gives the tenant the right to purchase the leased property under specified terms and conditions. The option is usually exercisable within a certain time period or at the end of the lease term. This...

In real estate law, a Leasehold Estate is an interest in property held by a tenant under a lease agreement for a specified term. It grants the tenant the right to possess and use the property during the lease period. A leasehold estate is considered a personal...

In real estate, a Lease is a contract in which the owner of real property grants another party the right to possess and use the property for a specified period of time. In return, the tenant agrees to provide consideration, usually in the form of rent. A lease defines...

In real estate, a Latent Defect is a hidden or concealed defect in a property that is not discoverable through a reasonable inspection. These defects are not apparent upon ordinary observation and may exist within structural components, systems, or materials. Latent...