Click on each term to see full definitions


In simplest terms means "a reduction". Usually in real estate it is used with a reduction in rent or amount due, but is also used with terms such as noise Abatement (putting up sound barriers to reduce noise) and Pollution abatement (controlling smokestack emissions).


Absorption Rate

This is a good indicator as to how fast properties are selling/leasing during a specific period of time. To figure it out you take a time frame and divided it by the the number of properties that sold/ leased in a specific area (you can even narrow it down more ie. specific price range, property etc.). Then you multiply it by the number of active listings.

(Time Frame/Number of Homes Sold) x Active Listings

Abstract Of Title

It is a written history of the title for a parcel of land and it is how someone would prove that the property they are buying actually belongs to the one selling it and that the property is clear form any liens or anything else that. This is usually done by the buyers lawyer. This is only done in areas that still use the Registry system.


Acceleration Clause

A clause in mortgage/loan documents which say that the lender can "Call the loan" (make you pay the rest of what you owe before it is due) if certin criterias are met (for example you do not make your payments).


Accured Interest

Interest which has been accumulating (being earned) but has not been paid out yet.

Ad Valorem

"According to value". (For real estate) A Tax based on the Value of the Property, also known as property tax. This value is based on what the government thinks your house is worth (in many instances you can dispute there valuation)

Add-On Factor

Often referred to as the R/U (Rentable/Usable) Factor, it is how someone can figure out how much rent you have to pay for a property with common elements (ie. An indoor mall). For example: You may only have 800sqft of Rented space in your unit but they may expect you to pay rent on an extra 100sqft to cover your share of the common area expenses. In this case the rentable area is 800sqft and the Usable area is be 900sqft. There for the Add on Factor is 1.125 . So if your monthly rent for 800sqft is $2,000 your actual amount is $2,250.

Usable sqft/Rentable Sqft

Add-On Interest

An interest amount added to the principal of a debt and made payable as part of the debt , usually in equal periodic installments (also called Pre-calculated interest).

Adjustable Rate Mortgage (ARM)

A mortgage for which the interest rate is adjusted periodically according to movements in a pre-selected index.

Adverse Possession

When an individual, not the owner, takes actual possession of the property, hostile to, and without the consent of, the owner.


A statement of declaration in writing and sworn or affirmed before an authorized individual, such as a notary public.


A relationship which arises out of a contract, where an agent is authorized by a principal (client) to engage in certain acts, usually in dealing with one or more third party(s).

Agreement Of Purchase And Sale

A written contract to buy property in which the purchaser and vendor agree to sell upon terms and conditions as set forth in the agreement.

Air Lines

Compressed air lines for operating machinery, such as pneumatic tools.

Air Rights

The right to undisturbed use and control of designated air space above a specific land area within stated elevations. Such rights may be acquired to construct a building above the land or building of another or to protect the light and air of an existing or proposed structure on an adjoining lot. See also transferable development right (TDR).

Alienation Clause

This is a clause that enables the mortgagee to demand payment of the outstanding balance including interest upon sale or transfer of title. (also known as a "due on sale" clause).

Allowance Over Building Shell

Most often used in a yet-to-be constructed property, the tenant has a blank canvas upon which to customize the interior finishes to their specifications. This arrangement caps the landlord’s expenditure at a fixed dollar amount over the negotiated price of the base building shell. This arrangement is most successful when both parties agree on a detailed definition of what construction is included and at what price.


Special characteristics that can enhance a property's appeal.

Amortization Of A Mortgage

The arrangement for paying off a mortgage by installments, over a period of time.

Amortization Period

The time period required to completely retire a debt through scheduled payments of principal.


The gradual retirement of a debt by means of partial payments of the principal at regular intervals.


The basic flow of electrons in a conductor is called current. The basic unit of electrical current is measured in Amperes, often referred to as Amps. Any service rated over 400 amps is typically commercial service although 200-400 amps are generally seen in flex buildings and 800+ for heavy industrial buildings. Amps fields allow a range from low to accommodate different sources of power.

Anchor Tenant

The major or prime tenant in a shopping center, building, etc.

Anniversary Date

The occasion of one year from an event pertaining to a mortgage. (Eg. Registration date)

Annual Avg Daily Traffic: (AADT)

This is the total volume of vehicle traffic for a highway or road for a year divided by 365 days.

Annual Debt Service

Annualized payment of a loan obligation. (AKA monthly payment annualized).

Annual Percentage Rate (APR)

The actual cost of borrowing money, expressed in the form of an annual interest rate. It may be higher than the note rate because it represents full disclosure of the interest rate, loan origination fees, loan discount points, and other credit costs paid to the lender.


An estimate of opinion and value based upon a factual analysis of a property by a qualified professional.

Appraised Value

An estimate of property value written by a qualified individual (AACI). Appraisals performed for mortgage lending purposes, may not reflect the market value of the property, or the purchase price.


The increased value of an asset.


Something which is outside the property itself, but belongs to the land and is joined thereto; eg. a road over another's land providing an access (right-of-way) is an appurtenance.

Annual Percentage Rate (APR)

The yearly interest percentage of a mortgage as expressed by the actual rate of interest paid given the term, rate, amount and cost of arrangement.

Adjustable Rate Mortgage (ARM)

A mortgage for which the interest rate is adjusted periodically according to movements in a pre-selected index.


To be "in arrears" is to be behind in the payments called for under a mortgage agreement.

As-Is Condition

When in a real estate contract this means that the Seller (or Landlord) is not responsibe for condition of the property, even for things that may be expected in other transactions. If you see this in your contract (and you are the buyer/tennant)… do your home work, get a proffessional to check everything out (ie. home inspector, building inpector, enviromental expert, structural engeneer etc.) You do not want to close a deal and realize there are huge problems that are going to cost you a fortune.


Asking Rent

AKA Face Rent, this represents the dollar amount the lessor is asking for in order to lease their building/space/land. It is represented as an annual or monthly amount depending on the area where the property is located. Most markets reflect an annual amount while some western markets use a monthly amount.


A purchase of two or more parcels by one property owner. The buyer may (but not always) pay a premium over the market value because of the buyer's special motivations associated with buyer's use of the combined parcels. Typically the buyer is in the process of assembling several contiguous parcels to make one large parcel for a particular project and this transaction is one of many purchases that have or will take place.

Assessed Value

An amount assigned to taxable property, for the purpose of equalizing the burden of taxation.

Assessed Value

For commercial real estate it's a value assigned by the local tax assessor on land and/or structures for purposes of taxation only.


A fee imposed on property, usually to pay for public improvements such as water, sewers, streets, improvement districts, etc.

Asset Manager

The company or contact that handles all the financial transactions for the subject property insuring the loans, appraisals, and management requirements are in order and operating correctly. Asset Managers usually handle portfolios of properties, which the subject property may be one of.


One who takes the rights or title of another by assignment.

Assignment Of Mortgage

The assigning of a mortgagee's interest in the mortgage to a new mortgagee. The legal sale of the mortgage with or without an agreement to repurchase.

Assignment Of Rentals

The enforcable diversion of income from mortgaged property to the Mortgagee.


A transfer by lessee of lessee’s entire estate in the property. Distinguishable from a sublease where the sublessee acquires something less than the lessee’s entire interest.


One who transfers or assigns the rights or title to another.

Assumption Agreement

A document which binds someone other than the mortgagor, to perform mortgage obligations.

Assumption Of Mortgage

The action of a purchaser taking responsibility for a mortgage debt by way of a legal agreement. The original covenantor(s) responsibility pursuant to the mortgage obligation remains intact in such arrangement, so long as the existing documentation remains registered.


A lobby with a high, vaulted ceiling or a grand, central court that separates two halves of a large building. An atrium will decrease the amount of rentable area in a building but increase the amount of high value space by incorporating more windowed offices into the building design and adding aesthetic value. See also: Amenities


In context of the My Surveys page, refers to a file that is associated with a saved survey and is uploaded for storage into a Client Folder. See also: Client Folder, Publish.


To turn over or transfer to another money or goods. To agree to recognize a new owner of a property and to pay him/her rent. In a lease, when the tenant agrees to attorn to the purchaser, the landlord is given the power to subordinate tenant's interest to any first mortgage or deed of trust lien subsequently placed upon the leased premises.

Attornment Of Rent

The redirection of rental income to a Mortgagee, usually in the event of default.

Auction Sale

The offering for sale of real property to the highest bidder. It's important to understand the reason for the auction. Typically this type of sale occurs in a declining market when other traditional types of sales have not been successful.


A large room used to accommodate an audience for large meetings or performances.


The legal right given by a principal to an agent to act on the principal's behalf in performing specific acts or negotiations. Auto Dealership: Retail secondary type. New or used car dealership facility with substantial amount of building improvements that includes some or all of the following: showroom, offices, parts dept., auto repair/service dept., body shop.

Auto Mall

A group of retail stores clustered together involved in sales, service, repair, and/or parts for automobiles.

Auto Repair

Retail secondary type. Commercially zoned single and/or multi-tenant buildings featuring service/work bays for wide ranges of auto repair and auto care services.

Availability Rate

The percent of space available on the last day of each quarter or the current date in the case of the current quarter. Total Available SF divided by the total RBA on the last day of each quarter.

Average Rent

Average rent is the weighted average rent for a building or market. Rents are weighted based on the total square footage available at a rental rate. If the rental rate is zero, TBD (to be determined) or negotiable; it is not counted in the average rent. Average rent is calculated from suite-by-suite detail. However, average rent can be reconstituted by multiplying the listed average by the listed space available. See Weighted Average Rent

Balance Due On Completion

The amount of money a purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made.

Balloon Payment

This is a final mortgage payment at the end of the term which pays off the outstanding loan in full. The amount of money (principal) required to discharge a mortgage at maturity.


The condition or state of a person (individual, partnership, corporation, etc.) who is unable to repay it's debts as they are, or become, due.


Proceedings under federal statures to relieve a debtor who is unable or unwilling to pay its debts. After addressing certain priorities and exemptions, the bankrupt’s property and other assets are distributed by the court to creditors as full satisfaction for the debt. See also: "Chapter 11".

Base Rent

A set amount used as a minimum rent in a lease with provisions for increasing the rent over the term of the lease. See also "Escalation Clause", "Operating Expense Escalation" and "Percentage Lease".

Base Year

Actual taxes and operating expenses for a specified base year, most often the year in which the lease commences. Once the base year expenses are known, the lease essentially becomes a dollar stop lease.


Any structure or a portion of a structure located underground or below the surface grade of the surrounding land.

Blanket Mortgage

A single registered document which encumbers more than one property.

Blended Payment

Equal payments consisting of both principal and interest, paid regularly during the term of the mortgage.

Breach Of Contract

Failure to fulfil an obligation under a contract. Breach confers a right of action on the offended party.

Building Classifications

Building classifications in most markets refer to Class "A", "B", "C" and sometimes "D" properties. While the rating assigned to a particular building is very subjective, Class "A" properties are typically newer buildings with superior construction and finish in excellent locations with easy access, attractive to credit tenants, and which offer a multitude of amenities such as on-site management or covered parking. These buildings, of course, command the highest rental rates in their sub-market. As the "Class" of the building decreases (i.e. Class "B", "C" or "D") one component or another such as age, location or construction of the building becomes less desirable. Note that a Class "A" building in one sub-market might rank lower if it were located in a distinctly different sub-market just a few miles away containing a higher end product.

Building Code

The various laws set forth by the ruling municipality as to the end use of a certain piece of property and that dictate the criteria for design, materials and type of improvements allowed.

Building Codes

Regulations established by government providing for structural requirements.

Building or "Core" Factor

Represents the percentage of Net Rentable Square Feet devoted to the building's common areas (lobbies, rest rooms, corridors, etc.). This factor can be computed for an entire building or a single floor of a building. Also known as a Loss Factor or Rentable/Usable (R/U) Factor, it is calculated by dividing the rentable square footage by the usable square footage. See also "Rentable/Usable Ratio".

Building Standard Plus Allowance

The landlord lists, in detail, the building standard materials and costs necessary to make the premises suitable for occupancy. A negotiated allowance is then provided for the tenant to customize or upgrade materials. See also "Workletter".

Building Standard

A list of construction materials and finishes that represent what the Tenant Improvement (Finish) Allowance/Work Letter is designed to cover while also serving to establish the landlord's minimum quality standards with respect to tenant finish improvements within the building. Examples of standard building items are: type and style of doors, lineal feet of partitions, quantity of lights, quality of floor covering, etc.


The space improvements put in place per the tenant's specifications. Takes into consideration the amount of Tenant Finish Allowance provided for in the lease agreement. See also "Tenant Improvement Allowance".


An approach taken to lease space by a property owner where a new building is designed and constructed per the tenant’s specifications.

Bullet Loan

Any short-term, generally five to seven years, financing option that requires a balloon payment at the end of the term and anticipates that the loan will be refinanced in order to meet the balloon payment obligation. Essentially, should the refinancing not be available, often due to the property not performing as anticipated, the borrower is "shot" and the property is subject to foreclosure. An example of this is when a developer borrows to cover the costs of construction and carry-costs for a new building with the expectation that it would be replaced by long-term (or "permanent") financing provided by an institutional investor once most of risk involved in construction and lease-up had been overcome resulting in an income-producing property.


A payment to the lender from the seller, buyer or third party causing the lender to reduce the interest rate during the term of the mortgage.


Refers to a maximum interest rate increase for a mortgage.

Capital Expenses

This type of expense is most often defined by reference to generally accepted accounting principles (GAAP), but GAAP does not provide definitive guidance on all possible expenditures. Accountants will often disagree on whether or not to include certain items.

Capitalization Rate

The rate of return anticipated by an investor in property.

Capitalization Rate

The rate that is considered a reasonable return on investment (on the basis of both the investor's alternative investment possibilities and the risk of the investment). Used to determine and value real property through the capitalization process. Also called "free and clear return". See "Capitalization".


A method of determining value of real property by considering net operating income divided by a predetermined annual rate of return. See "Capitalization Rate".

Capitalized Value

The value of a property based on the net income.

Carrying Charges

Costs incidental to property ownership, other than interest (i.e. taxes, insurance costs and maintenance expenses), that must be absorbed by the landlord during the initial lease-up of a building and thereafter during periods of vacancy.

Caveat Emptor

Let the buyer beware. A buyer must examine fully before the purchase is made.

Certificate Of Cherge

A mortgage document in the Land Titles System.

Certificate of Occupancy

A document presented by a local government agency or building department certifying that a building and/or the leased premises (tenant's space), has been satisfactorily inspected and is/are in a condition suitable for occupancy.


A procedure by which the mortgagee (“lender”) either takes title to or forces the sale of the mortgagor’s (“borrower”) property in satisfaction of a debt. See also "Deed In Lieu Of Foreclosure".


Remedial court action taken by a mortgagee when default occurs on a mortgage, to cause forfeiture of the equity of redemption of the mortgagor.

Forward Commitment

Lender's commitment to make or assume a future loan.


The ownership of a tract of land on which the building(s) are located. The oldest and most common typed of ownership of real estate.

Full Recourse

A loan on which an endorser or guarantor is liable in the event of default by the borrower.

Full Service Rent

An all-inclusive rental rate that includes operating expenses and real estate taxes for the first year. The tenant is generally still responsible for any increase in operating expenses over the base year amount. See also "Pass Throughs".

Fully Amortized Loan

Mortgage loan wherein the stipulated repayments repay the loan in full by its maturity date.

Further Charge

A second or subsequent loan of money to a mortgagor by a mortgagee, either on the same or on an additional security.

Future Proposed Space

Space in a proposed commercial development which is not yet under construction or where no construction start date has been set. Future Proposed projects include all those projects waiting for a lead tenant, financing, zoning, approvals or any other event necessary to begin construction. Also may refer to the future phases of a multi-phase project not yet built.

G/E Capitol

The General Electric Capitol Corporation insures high ratio mortgages for lenders.

Gale Date

The dates on which interest is charged or compounded on the mortgage loan.

Gap Financing

A loan required by a builder to obtain funds during the period between a permanent take out commitment and a construction loan. The construction lender will usually require permanent mortgage commitment to the full amount of the construction loan plus a hold back provision that only the "floor" amount will be funded at the completion of construction.

General Contractor

The prime contractor who contracts for the construction of an entire building or project, rather than just a portion of the work. The general contractor hires subcontractors, (e.g., plumbing, electrical, etc.), coordinates all work, and is responsible for payment to subcontractors.

General Partner

A member of a partnership who has authority to bind the partnership. A general partner also shares in the profits and losses of the partnership. See also “Limited Partnership”.

Graduated Amortization Mortgage

A special method of repayment on a mortgage whereby repayments in the initial period are low and are gradually later stepped up at a higher rate. Graduated payments mortgages were devised to enable lower income families to become home owners.

Graduated Lease

A lease, generally long term in nature, which provides that the rent will vary depending upon future contingencies, such as a periodic appraisal, the tenant’s gross income or simply the passage of time.


A technical term used in deeds of conveyance to indicate a transfer of an interest or estate in land.


To bestow or transfer an interest in real property by deed or other instrument; either the fee or a lesser interest, such as an easement.


One to whom a grant is made.


The party to whom an interest in real property is conveyed (the buyer).


The person making the grant.


The person who conveys an interest in real estate by deed (the seller).

Gross Absorption

A measure of the total square feet leased over a specified period of time with no consideration given to space vacated in the same geographic area during the same time period. See also “Net Absorption”.

Gross Building Area

The total floor area of the building measuring from the outer surface of exterior walls and windows and including all vertical penetrations (e.g. elevator shafts, etc.) and basement space.

Gross Debt Service (GDS)

The percentage of gross annual income required to cover payments associated with housing.

Gross Debt Service Ratio

Allowable ration of payments for principal, interest and taxes to gross income.

Gross Income

The scheduled income from the operation of the business of the management of the property, customarily stated on an annual basis.

Gross Lease

A lease in which the tenant pays a flat sum for rent out of which the landlord must pay all expenses such as taxes, insurance, maintenance, utilities, etc.

Gross Rent Multiplier

Method of appraising the fair market value of property by multiplying the gross rents by a factor which varies according to the type of property, and the location o the property.

Ground Rent

Rent paid to the owner for use of land, normally on which to build a building. Generally, the arrangement is that of a long-term lease (e.g. 99 years) with the lessor retaining title to the land.

Guaranteed Income Mortgage

A third party without interest in the property who agrees to assume responsibility for a debt in the event of default by the mortgagor.


One who makes a guaranty. See also “Guaranty”.


Agreement whereby the guarantor undertakes collaterally to assure satisfaction of the debt of another or perform the obligation of another if and when the debtor fails to do so. Differs from a surety agreement in that there is a separate and distinct contract rather than a joint undertaking with the principal. See also "Guarantor".

Hard Cost

The cost of actually constructing the improvements (i.e. construction costs). See also “Soft Cost”.

High Ratio Mortgage

A mortgage loan which exceeds 75% of the lending value of the property, and must be insured against default of payment.

High Rise

In the Central Business District, this could mean a building higher than 25 stories above ground level but in suburban sub-markets, it generally refers to buildings higher than 7 or 8 stories.

Highest and Best Use

The use of land or buildings which will bring the greatest economic return over a given time which is physically possible, appropriately supported, financially feasible.

Hold Back

An amount of money retained by a construction lender or owner until satisfactory completion of the work performed by a contractor.

Hold Over Tenant

A tenant retaining possession of the leased premises after the expiration of a lease.

Heating, Ventilating and Air-Conditioning (HVAC)

The acronym for “Heating, Ventilating and Air-Conditioning”.

Immediate Participation Loan

A loan in which all of the partners contribute their share immediately.


In the context of leasing, the term typically refers to the improvements made to or inside a building but may include any permanent structure or other development, such as a street, sidewalks, utilities, etc. See also “Leasehold Improvements”. See also “Leasehold Improvements” and "Tenant Improvements".

Income Bond

Bonds which pay a fixed rate of interest contingent upon earnings. These bonds may originate from a reorganization because of a default on mortgage bonds.

Income Property Loan

A loan which is secured on property which already has a source of income, eg. Rents which will cover the debt service payments on the loan.

Income/Expense Ratio

Ratio of operation expenses to gross income and expressed as a percentage (also known as operating ratio).


A document of deed, usually in duplicate, expressing certain objects between the parties.

Indirect Costs

Development costs, other than material and labor costs which are directly related to the construction of improvements, including administrative and office expenses, commissions, architectural, engineering and financing costs.


A judicial process or order requiring the person to whom it is directed to do or refrain from doing a particular thing.


A form of written legal document.

Insurable Value

The term is used conventionally to designate the amount of insurance which may be carried on destructible portions of a property to indemnify the owner in the event of loss.

Interest (Rate)

The profit of a loan as expressed on a percentage basis.

Interest Adjustment

A date from which interest on the mortgage advanced is calculated for your regular payments. This date is usually one payment period before regular mortgage payments begin, as interest payable is due from the date your mortgage is advanced.

Interest Escalation

Rate of interest on a loan is raised periodically during the term of the loan so as to encourage early repayment.

Interest Only Loan

Borrower pays back interest only on the loan and there is no amortization until later or until the end of the term. This may occur when a purchaser wishes to resell property after a short period or if he wishes to build up enough income from the property before amortization.

Interim Financing

Interim loans are used to bridge the gap between the construction loan and the permanent loan (hence "bridge" loans) lasting form one to three years.

Intermediate Term Loan

A short-term loan from 3 to 5 years with no or partial amortization (balloon loan).


A person who dies without a will, or leaves one which is defective in form, in which case the estate descends by operation of law to the next of kin.


The total amount of rentable square feet of existing and any forthcoming space (whether it be a tenant vacating space or new buildings coming on the market), in a given category, for example, all warehouse space in a specified submarket. Inventory refers to all space within a certain proscribed market without regard to its availability or condition, and categories can include all types of leased space such as office, flex, retail and warehouse space.


Incapable of being recalled or revoked; unchangeable, unalterable.

Joint And Several Note

Promissory note on which there are two or more promisors who are jointly and severally liable.

Joint Tenancy

Ownership of land by two or more persons whereby, on the death of one, the survivor or survivors take the whole estate.

Judgment Lien

An encumbrance that arises by law when a judgment for the recovery of money attaches to the debtor’s real estate. See also "Lien".


The final decision of a court resolving a dispute and determining the rights and obligations of the parties. Money judgments, when recorded, become a lien on real property of the defendant.

Junior Financing

This is a subordinate mortgage or loan very often given by a seller of property, second in priority to an existing loan.

Just Compensation

Compensation which is fair to both the owner and the public when property is taken for public use through condemnation (eminent domain). The theory is that in order to be “just”, the property owner should be no richer or poorer than before the taking.


An extra bonus or additional payment over and above the fixed interest already paid to an investor eg. A percentage of gross profits or cash flow.

Loan-To-Value Ratio (LTV)

The ratio of the loan to the lending value of a property, expressed as a percentage.

Land Acquisition Loan

Loan advanced to acquire land as opposed to improving land or buildings.

Land Contract

A contract drawn between a buyer and seller for the sale of property.

Land Development Loan

Loan advanced for the purpose of developing raw land for residential and related uses.

Landlord’s Lien Or Warrant

A warrant from a landlord to levy upon a tenant’s personal property (e.g., furniture, etc.) and to sell this property at a public sale to compel payment of the rent or the observance of some other stipulation in the lease.

Landlord’s Lien

A type of lien that can be created by contract or by operation of law. Some examples are: (1) a contractual landlord’s lien as might be found in a lease agreement; (2) a statutory landlord’s lien; and (3) landlord’s remedy of distress (or right of distraint), which in not truly a lien but has a similar effect. See also "Lien".

Lease Agreement

The formal legal document entered into between a Landlord and a Tenant to reflect the terms of the negotiations between them; that is, the lease terms have been negotiated and agreed upon, and the agreement has been reduced to writing. It constitutes the entire agreement between the parties and sets forth their basic legal rights.

Lease Commencement Date:

The date usually constitutes the commencement of the term of the Lease for all purposes, whether or not the tenant has actually taken possession so long as beneficial occupancy is possible. In reality, there could be other agreements, such as an Early Occupancy Agreement, which have an impact on this strict definition.


An agreement whereby the owner of real property (i.e., landlord/lessor) gives the right of possession to another (i.e., tenant/lessee) for a specified period of time (i.e., term) and for a specified consideration (i.e., rent).

Leasehold Appraisal

A method of estimating the value of leasehold property.

Leasehold Improvements

Improvements made to the leased premises by or for a tenant. Generally, especially in new space, part of the negotiations will include in some detail the improvements to be made in the leased premises by Landlord. See also “Tenant Improvements”.

Leasehold Mortgage

A mortgage given by a lessee on the security of the leasehold interest in the land.


A type of interest in a property that is certain only for a specified period of tie granted by contract.

Legal Description

A geographical description identifying a parcel of land by government survey, metes and bounds, or lot numbers of a recorded plat including a description of any portion thereof that is subject to an easement or reservation.

Legal Description

A written description by which property can be definitely located, and which is acceptable for registration in a land registry system.

Legal Mortgage

A transfer of a legal estate or interest in property for the purpose of securing the repayment of a debt.

Legal Owner

The term is in technical contrast to equitable owner. The legal owner has title to the property, although the title may actually carry no rights to the property other than as a lien. See also “Lien”.

Lending Value

An independent appraiser's value interpreted by the lender as to the worth of a property in the current market given a reasonable time period to sell the property.

Lessee 's Interest

The market value of property less the value of the lessor's interest. The present worth o the annual advantage, if any, accruing to the lessee by reason of the contract rent being less than the economic rent.


Tenant under a lease.


The person who grants us of the property under lease to a tenant.

Letter Of Attornment

A letter from the grantor to a tenant, stating that a property has been sold, and directing rent to be paid to the grantee (buyer). See also “Attorn”.

Letter Of Commitment

Letter written by the lender containing the amount of the loan, specified interest rate, term of loan, and specific conditions.