Protecting Pennsylvania Property Since 1984

L

Landlord - See lessor.

Lawsuit - A dispute between two or more parties that has been referred to the court system by one of them.

Lease - A written instrument creating a right of possession to land for a set term, usually in exchange for periodic rent payments.

Leasehold - The right to possession and use of land for a fixed period of time created in a lease.

Legal description - A description of real property that is sufficient to locate and identify it.

Lessee - A tenant holding a leasehold.

Lessor - A landlord; one who gives a leasehold to a lessee.

License - Permission to go upon or use the land of another, the permission being a personal privilege and not constituting an interest in the land. A license can be revoked at any time.

Lien - A monetary charge imposed on a property, usually arising from some debt or obligation.

Lien waiver (also called a “waiver of liens”) - A waiver of lien rights by someone providing labor or materials for the improvement of specified land.

Life estate - An individual’s right to the use and occupancy of real estate for his or her life.

Like Kind Property - Property disposed of and the property acquired for a Section 1031 exchange must be "like kind" to each other, and must be held for productive use in a trade or business or for investment. There are two types of property: real and personal. Real property is like kind to all other types of real property. Personal property is like kind only to personal property if it is of similar use or quality.

Examples of Like Kind Property Exchanges:

  • Real property may be exchanged with trade or business, or investment properties. For example, an apartment building can be exchanged for a hospital, several single-family rent houses, or a shopping center.
  • Personal property may only be exchanged for the same type of property; for example, an airplane must be exchanged for an airplane, a boat for a boat, cattle for cattle (livestock received must be the same sex as livestock disposed of!), a dump truck for a dump truck, etc.

It is important to note that property used for personal use such as the taxpayer's primary residence or a pleasure boat or any property not used for a business or investment purpose, would not qualify for Section 1031 treatment. Consult your tax advisor to determine if your properties qualify for 1031 treatment.

Link - In surveying, a length of 7.92 inches. One hundred links equal a chain, or 66 feet.

Lis pendens - A legal notice that there is litigation pending relating to the land, and a warning that anyone obtaining an interest subsequent to the date of the notice may be bound by the judgment.

Loan policy (also called “mortgagee policy”) - A title insurance policy insuring a mortgagee, or beneficiary under a deed of trust, against loss caused by invalidity or unenforceability of a lien, or loss of priority of the mortgage or deed of trust.

Loan-to-value ratio - The ratio of the amount of the loan divided by the fair market value of the land held as security for the loan.

Lot - Any portion or parcel of real property. Usually refers to a portion of a subdivision.

Contact

Tara E. Stitz