Land contract - See, CONTRACT FOR DEED.

Lease hold estate - Tenant's right of possession for a specific period of time under a lease agreement. (Common in Hawaii.)

Lien - A claim or charge against property. Property is said to be encumbered by a lien and the lien must be removed to clear title.

Life cap - With regard to an adjustable rate mortgage, a ceiling the note rate cannot exceed over the life of the loan.

Life estate - The right to use, occupy and own for the life of an individual. Compare, FEE SIMPLE.

Lis pendens - Recorded document showing a pending litigation filed in the court. These show up on the preliminary title report and must be dealt with when transferring ownership or refinancing.

Loan application - The loan application is the source of information on which the lender bases a decision to make the loan; defines the term of the loan, gives the name(s) of the borrower(s), place of employment, salary, bank accounts and credit references, and describes the real estate that is to be mortgaged. It also stipulates the amount of the loan being applied for and the repayment terms.

Loan-to-value ratio (ltv) - The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.