Glossary Archive

Liquidated Damages in ADR Settlements Liquidated damages are a predetermined amount of money that parties agree upon in a contract to be paid as compensation for specific breaches of that contract. These damages are established at the time of contract formation and are meant to provide a clear and predictable remedy should a breach occur....

Lis Pendens A Lis Pendens is a legal notice indicating that a lawsuit has been filed concerning a specific property. This notice serves as a warning to potential buyers or financiers that the property is subject to litigation, which may affect the ownership or rights associated with it. When a Lis Pendens is filed, it...

Litigation Litigation refers to the process of taking legal action or resolving disputes through the court system. It encompasses the entire spectrum of legal proceedings, from the filing of a lawsuit to the final judgment or settlement. Litigation is often contrasted with alternative dispute resolution methods, such as mediation and arbitration, which seek to resolve...

Livery of Seisin in Property Transfers Livery of seisin is a traditional legal ceremony that signifies the transfer of ownership of real property. It involves the physical delivery of possession of the land or property from the grantor (seller) to the grantee (buyer) and is often accompanied by a symbolic gesture, such as handing over...

A Living Revocable Trust is a legal arrangement created during an individual's lifetime that allows them to manage their assets while retaining control over those assets. It is a type of trust that can be altered or revoked at any time by the person who established it, known as the grantor or settlor. The primary...

A Living Trust is a legal document created during a person's lifetime that places their assets into a trust for their benefit and the benefit of their designated beneficiaries. It is also known as an inter vivos trust. The primary purpose of a living trust is to manage and distribute assets efficiently, avoiding the probate...

A Living Will is a legal document that allows individuals to express their preferences regarding medical treatment and end-of-life care in the event they become incapacitated and unable to communicate their wishes. It is a type of advance directive that specifically addresses scenarios where individuals are facing terminal illness or severe medical conditions, guiding healthcare...

Loan Assumption Agreement A Loan Assumption Agreement is a legal document that allows a buyer to take over the seller's existing loan obligations under specific terms and conditions. This agreement is commonly used in real estate transactions when a buyer purchases property that has an outstanding mortgage. In a Loan Assumption Agreement, the buyer agrees...

Loan Commitment Letter A Loan Commitment Letter is a formal document issued by a lender to a borrower, stating that the lender is willing to provide a loan subject to certain conditions. This letter is a critical step in the financing process, as it outlines the specific terms of the loan, including the amount, interest...

Loan-to-Value (LTV) Ratio The Loan-to-Value (LTV) Ratio is a financial term used primarily in mortgage lending to assess the risk of a loan. It is calculated by dividing the amount of the loan by the appraised value of the property being purchased or refinanced. The LTV Ratio is expressed as a percentage. For example, if...