debt, not his or her proportional share. An example of this

Maryland Real Estate terms I-L Flashcards Jointly And Severally LiableWhen two or more individuals or entities are responsible for a debt or cost, each individual is responsible for the whole debt, not his or her proportional share. An example of this is when married couples share a credit card or a car loan.Latent DefectA hidden structural defect that could not be discovered by ordinary inspection and that threatens the property's soundness or the safety of its inhabitants. Some states impose on sellers and licensees a duty to inspect for and disclose latent defects.Limited Common ElementsAreas within a condominium that are owned by the community but only used by one or more owners (not all owners). Apartment balconies are typically limited common elements.LessorA written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord's real property to the lessee for a specified period of time and for a stated consideration (rent). By state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable.InterestA charge made by a lender for the use of money.Limited Liability CompanyA form of business organization that combines the most attractive features of limited partnerships and corporations.Limited liability company is also referred to as LLC.JudgmentThe formal decision of a court upon the respective rights and claims of the parties to an action or suit. After a judgment has been entered and recorded with the county recorder, it usually becomes a general lien on the property of the defendant.Listing AgreementA contract between an owner (as principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission.Interstate Land Sales Full Disclosure Act A federal law that regulates the sale of certain real estate in interstate commerce.LesseeA written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord's real property to the lessee for a specified period of time and for a stated consideration (rent). By state law, leases for longer

than a certain period of time (generally one year) must be in writing to be enforceable.Implied ContractA contract under which the agreement of the parties is demonstrated by their acts and conduct.Impound AccountAn account that most mortgage lenders require borrowers to have for funds to pay future real estate taxes and

insurance premiums.

Improvement1. Any structure, usually privately owned, erected on a site to enhance the value of the property (e.g., building a fence or a driveway). 2. A publicly owned structure added to or benefiting land (e.g., a curb, sidewalk, street, or sewer) Implied AgencyBased on the actions of the parties that imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.Independent ContractorSomeone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays for all expenses and Social Security and income taxes and receives no employee benefits. Most real estate salespeople are independent contractors.LegateesThe person to whom a legacy is given.Lis PendensA recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court.Land ContractA transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets certain requirements, a taxpayer can postpone reporting such income until future years by paying tax each year only on the proceeds received that year.Loan-to-value RatioThe relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral.Jointly And SeverallyWhen more than one individual or entity is responsible for an action, each individual or entity is viewed as responsible for the whole action, not just his or her proportional share.This is typical with cosigners on debts.Leased FeeInterest held by a landlord when the property is subject to a ground rent.Legal Life EstateA form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur. See dower, curtesy, and homestead for legal life estates used in some states.LandThe earth's surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.Involuntary AlienationThe act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.Irrevocable ConsentA document signed by a non-Maryland-resident licensee that authorizes the Real Estate Commission to accept legal service of documents on the licensee's behalf.