Graduated Lease: A lease, generally long-term in nature, in which rent varies depending upon future contingencies.
Grant: To bestow or transfer an interest in real property by deed or other document.
Grantee: One to whom a grant is made.
Grantor: The person making the grant.
Ground Lease: A lease in which only the land is rented. A ground lease investment is ownership of the ground only.
Income Property: Real estate that is owned or operated to produce revenue.
Indexed Rate: The sum of the published index plus the margin.
Ingress: Entry into a property.
Initial Interest Rate: The original interest rate of the mortgage at the time of closing.
Installment: The regular periodic payment that a borrower agrees to make to a lender.
Lease Commencement Date: The date upon which the tenant begins to pay rent.
Lease: An agreement whereby the owner of property (lessor) gives the right of possession to a tenant (lesses) for a
specified period of time (term) for a specified amount of money (rent).
Leasehold Interest: The right to hold or use property for a fixed period of time at a given price. Leasehold refers to the ownership of the building only over a set period of time.
Legal Description: A geographical description identifying a parcel by government survey.
Letter of Credit: A commitment by a bank or other person that the issuer will honor demands for payment upon full compliance with the conditions specified in the letter of credit. Letters of credit are often used in place of cash deposited with the landlord in satisfying the security deposit provisions of a lease.
Liabilities: A person’s financial obligations. Liabilities include long-term and short-term debt.
Lien: A claim or encumbrance against property used to secure a debt, a charge or the performance of some act
Like-Kind Property: Internal Revenue Section Code 1031 states that no gain or loss is recognized on the exchange of like-kind property. Like-kind property is defined as property held for productive use in a trade or business or for investment that is exchanged solely for similar property. The basis of the property acquired is the same as the basis of the property exchanged. For a more detailed explanation of like-kind property, please view the 1031 Exchange page on the Willis Ventures website.
Liquidity: The ease with which assets can be converted to cash without loss in value.
Listing Agreement: An agreement between the owner of a property and a real estate broker giving the broker authorization to attempt to sell or lease the property at a certain price and terms in return for a commission, set fee or other form of compensation.
Lock: Lender’s guarantee that the mortgage rate quoted will be good for a specific number of days from day of application.
Lockout: The period during which a loan may not be prepaid.
LOI (Letter of Intent): A preliminary agreement stating the proposed terms for a final contract.
Long-Term Lease: In most markets, this refers to a lease whose term is at least ten (10) years or longer from initial signing to the date of expiration or renewal.
