Land Contract – See Agreement of Sale.

Land Trust – A device to hold title to land in a trust with the beneficial ownership held by the landowner.

Land Use Ordinance – County code which sets forth zoning regulations for the county.

Landlord Tenant Code (LTC) – A Hawaii state law outlining the rights, obligations and remedies of a residential landlord and a tenant.

Lease – A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term.

Leasehold – An estate or right in real property held under a lease by the lessee.

Legal Description – A description, recognized by law that will definitely locate and identify the property.

Lessee – One who rents property under a lease contract.

Lessor – An owner who enters into a lease with a tenant.

Leverage – The use of borrowed funds in financing, with the anticipation that the property acquired will increase in return so that the investor will realize a profit, not only on his own investment but on the borrower’s funds as well.

License – A personal privilege to perform some act on the land of another.

Lien – A right, given by law, whereby a creditor may satisfy a debt out of the proceeds of the sale of real or personal property belonging to the debtor; an encumbrance, usually naming property as security for payment of a debt or for the discharge of an obligation.

Lien Letter – A limited title search issued to cover Land Court property in Hawaii.

Limited Common Element – In a condominium, those common elements reserved for the use of certain apartment, or certain apartments, to the exclusion of other apartments.

Liquidated Damages – An amount pre-determined by the parties to an agreement that will be forfeited as compensation for breach of contract.

Loan Commitment – A commitment by a lender as to the amount he will loan to a qualified borrower on a particular piece of real estate.