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Landlord
A real estate owner who rents or leases land or a building to another party, known as a tenant. The landlord will often provide the necessary maintenance or repairs during the rental period, while the tenant is responsible for the cleanliness and general upkeep of the property.

For real estate investors, becoming a landlord can be a profitable venture. It often provides a steady stream of income from the renter, while maintaining ownership over a property that is likely to appreciate in value.
Related Topic: Absentee Landlord.

Land Use Planning
Municipal guidelines for the use of development of land within its boundaries.

Latent Defect
A fault or flaw that is not immediately evident, or is hidden from view, during a reasonable inspection of the property.

Lease
An agreement signed between a landlord and a tenant, giving the tenant the right to occupy property for a fixed period of time, in return for a monthly rental. The lease agreement details the rights and obligations of the landlord and the tenant during the agreed period of lease.
Related Topic: Basic Rental, Escalation Rate, Gross Lease, Huur Gaat Voor Koop, Lease with Option to Purchase, Leasehold, Long Lease, Natural Vacancy Rate, Net Lease, Notarial Deed of Lease, Occupation, Percentage Lease, Renewal Option, Rental Types, Rent-Free Period, Resolutive Condition, Right of Pre-Emption, Sale & Leaseback, Triple Net Lease, Turnover Rental.

Lease with Option to Purchase
A rental contract that allows the tenant to purchase the property during the period of the lease. Payments under the lease may be credited, in whole or in part, against the purchase price.
Related Topic: Basic Rental, Escalation Rate, Gross Lease, Huur Gaat Voor Koop, Lease, Leasehold, Long Lease, Natural Vacancy Rate, Net Lease, Notarial Deed of Lease, Occupation, Percentage Lease, Renewal Option, Rental Types, Rent-Free Period, Resolutive Condition, Right of Pre-Emption, Sale & Leaseback, Triple Net Lease, Turnover Rental.

Leasehold
A long lease of more than 10 years in which the registered owner of the property (usually land) gives the lessee the right to treat the property as his/ her own for the length of the lease. It reverts back to the registered owner at the end of the lease.
Related Topic: Basic Rental, Escalation Rate, Gross Lease, Huur Gaat Voor Koop, Lease, Lease with Option to Purchase, Long Lease, Natural Vacancy Rate, Net Lease, Notarial Deed of Lease, Occupation, Percentage Lease, Renewal Option, Rental Types, Rent-Free Period, Resolutive Condition, Right of Pre-Emption, Sale & Leaseback, Triple Net Lease, Turnover Rental.

Legislation
Also referred to as statute law. Legislation is passed by the South African parliament, which is the supreme law-making body in the country. Apart from statutes, which are Acts of Parliament, other forms of legislation are ordinances and proclamations of the provincial councils. The term may refer to a single or collective body law.

Lender
A bank, finance institution, company or person providing finance to a borrower. In the property industry, usually the bank providing the home loan or bond, or development finance

Lessee
Also known as a tenant. A person who does not own the property but pays rent to occupy the property.

Lessor
The person who rents out the property to a lessee. A lessor can be the owner or a landlord letting the property on behalf of the owner.

Levy Clearance Certificate
A certificate issued by the body corporate of a sectional title scheme stating that the levies have been paid to a future date in respect of the property.

Lien
The right of retention. Where a person has improved someone else’s property or has incurred certain expenses in respect thereof, he may retain possession of such property until the debt due to him has been discharged. This right to retain possession is called lien.

Life Insurance
Also known as life assurance. An insurance policy that pays out a specific amount of money following the death of the insured, subject to numerous terms and conditions. Financial institutions require, as a condition of the loan grant, that the borrower cede an adequate insurance policy to the bank to cover the loan in the event of the borrower’s death or disability. The bank cannot insist, however, that the borrower do this through the bank’s own insurance company.
Related Topic: Bond Assurance.

Limited Real Right
A registered right over someone else’s property, for example, a servitude or a mortgage bond.

Liquidation
The legal process leading to the dissolution of a company or close corporation. A company or close corporation that is declared insolvent, or is ‘wound-up’ for other reasons, is said to be ‘in liquidation’.

Loan Agreement
An agreement which must be signed by the bondholder and sets out all the details of the loan offered by the bank, as well as the bank’s conditions in granting the loan.
Related Topic: Agreement of Loan, Bond, Building Loan.

Loan Plus Costs
A home loan, particularly first time homeowners, that allows the borrower to obtain a loan for more than 100% of the property value to cover the additional costs of buying a property, such as bond, registration and transfer costs, which they would otherwise have to pay from their own pockets.

Loan-to-Value Ratio (LTV)
The amount of the loan in relation to the current market value of the property. For example, if the market value of the property is R500 000 and the bank offers a loan of R500 000, the LTV is 100%. If the loan offered is only R400 000 the LTV is 80%. The calculation is made as follows: LTV = [home loan amount required divided by assessed property value] x 100.

Location, Location, Location
A popular adage referring to the fact that location is generally considered the most important factor in property acquisition decisions. The real question is what characterises a good location at any time, since the characteristics can change by city, by investor and over time. This term has been criticised for ramping property prices recently.

Lodgement
Handing in the necessary documents at the Deeds Office for verification and registration.

Long Lease
A lease for a period of not less than 10 years; or for the natural life of the lessee or any other person mentioned in the lease; or renewable from time to time indefinitely at the will of the lessee; or for periods that, together with the first period of the lease, amount to not less than 10 years.
Related Topic: Basic Rental, Escalation Rate, Gross Lease, Huur Gaat Voor Koop, Lease, Lease with Option to Purchase, Leasehold, Natural Vacancy Rate, Net Lease, Notarial Deed of Lease, Occupation, Percentage Lease, Renewal Option, Rental Types, Rent-Free Period, Resolutive Condition, Right of Pre-Emption, Sale & Leaseback, Triple Net Lease, Turnover Rental.

 
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