Real Estate / Business Glossary
"L" Dictionary Definition - What is a :
Land Information Memorandum (LIM)
When youíre buying a home (New Zealand) you can get a report from your Local Authority which sets out everything they know about the property ó things like use, zoning, designations and building consents, water, sewerage, stormwater and any possible hazards, rates owing, and compliance with the Building Act.
This is the probable price that the land is worth had it been sold on the date of the Rateable Valuation. It excludes any buildings but includes development work such as land contouring and levelling.
A contract by which the freeholder of a property allows someone else to occupy it under certain conditions and for a given length of time.
A leasehold defines an interest in a property for a specific period, usually for the payment of rent, and is defined by a lease contract. The lease transfers the rights of occupation of the property to the lessee who is often subject to covenants as to use, term and rental. A lease can be sold but the lessee is required to tell the property owner first. Leasehold is the ownership of a lease.
One who possesses the right to use or occupy a property under a lease agreement. Commonly termed a tenant.
The person who grants a lease. The lessor holds title to, and conveys the rights to use and occupy a property under a lease agreement. Commonly termed a landlord.
Licence to Occupy
A licence to occupy lets you live in the home and use the land but you donít own them. Most retirement villages operate this way.
Loan Agreement or Facility Agreement
This is the contract between you and the bank for the money that they are lending you.
Lump Sum Payment
This is when you pay an extra amount off your loan on top of your normal payments.