Dictionary

a b c d e f g h i j k l m n o p q r s t u v w x y z
Laches

An equitable doctrine used by courts to bar a legal claim or prevent the assertion of a right because of undue delay or failure to assert a claim or right.

Land

The earth’s surface extending downward to the center of the earth and upward infinitely into space.

Land Contract

See Contract for Deed.

Lapse

Termination of a policy because of failure to pay the premium. A policy lapses at the end of its grace period. For example, if you forget to pay your Whole Life premium when due, there is usually a 30 day grace period, during which time coverage continues until the policy lapses.

Last Will and Testament

See Will.

Late Charge

The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.

Latent Defect

A hidden structural defect presumably resulting from faulty construction known to the seller but not to the purchaser and not readily discoverable by inspection.

Law of Agency

See Agent.

Law of Large Numbers

An insurance company bases its rates on a homogeneous group. Risks are not usually considered insurable unless the insurer has a large enough base of previous loss experience to be able to accurately project future losses. It is the Law of Large Numbers that makes accurate predictions of similar risks possible.

Lease

A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent.