latent defect
A hidden or concealed defect that would not be discovered during the course of a reasonable inspection.

latent value
The value possessed by a property which has potential for redevelopment because it is currently not employed at its Highest and Best Use.

lateral support
The support provided to one piece of land by the land which lies next to it.

lease
An instrument granting exclusive possession of land to another for a specified term, usually at a rent. The one who grants the lease is called the Landlord (or Lessor) and the one to whom it is granted is called the Tenant (or Lessee ).

lending value
The estimated value of a property for lending purposes. It is a long-term, conservative estimate of the value of the security as determined by the lender and, therefore, does not necessarily equal Market Value or Sales Price.

leverage
The partial use of debt to finance investments. The use of debt can magnify the potential variations of yields on the equity portion of the investment.

liability
Monies owed by a business. Contrast to Asset.

licence
With respect to real property, a privilege to enter onto premises for a certain purpose. However, this privilege does not confer upon the licensee any title, interest or estate in such property (e.g., exclusive right to possession of the property). Exampl

lien
A claim or charge on real or personal property for payment of some debt, lien obligation or duty.

life estate
An interest in land to be enjoyed during a person's life, and which ends on that person's death.

life estate pur autre vie
The form of Life Estate where the measuring life is that of some other person. (e.g., A man may grant a life estate pur autre vie to his deceased son's wife [his daughter-in-law] for the life of his grandchild. If the grandchild dies, the daughter-in-law

limited liability
The principle that a shareholder or limited partner cannot be held liable for more than he has paid into (or agreed to pay into) the firm. Contrast to Unlimited Liability.

limited partnership
A form of organization in which two or more persons conduct a business. It consists of one or more limited partners and one or more general partners. A general partner assumes unlimited liability but a limited partner has limited liability. Compare to Gen

liquidated damages
A specific sum of money expressly stipulated by the parties to a contract as a pre-estimate of the amount of damages to be recovered by either party for a breach of the contract by the other.

liquidity
The degree of ease and certainty with which an asset can be converted into cash.

listing agreements
A contract between an owner (vendor) and a real estate licensee whereby the licensee agrees to try to find a purchaser for the listed property in return for the vendor paying a stipulated amount of commission should the licensee be successful.

listing price
The value at which a property is advertised for sale.

loan-to-value ratio
The percentage of lending value which determines the maximum loan available. See Ratio. Compare to Gross Debt Service Ratio or Total Debt Service Ratio (for residential underwriting) and Debt Coverage Ratio (for commercial underwriting).

luxury condominium apartment
A two-bedroom apartment with a living room, dining room (possibly combined) and a kitchen, with family room or den, in a high-rise building with an inside floor area of 130 sq. metres (1,400 sq. ft.). Amenities include upgraded broadloom, 2 full bathrooms, ensuite laundry and storage areas, 5 appliances, a large balcony and 1 underground parking space. Common area includes a pool, sauna and other major recreation facilities.