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Land Identification Number Code
A unique, system generated 10 digit number assigned to a parcel of land in the Alberta Land Titles database and serves as a permanent identifier of that parcel until the parcel boundaries are changed.

Land Survey
The legal written and/or mapped description of the location and dimensions of land. Also see Real Property Report.

Land Surveyor
A licensed professional involved in the gathering, storing, processing and delivering of geographic information involved in the determination of property boundaries or assembly and analysis of land related information.

Land Surveyors Act
The legislation that establishes the definition of a land surveyor and the practice of land surveying in Alberta. It also prohibits anyone, other than an Alberta land surveyor, from engaging in the practice of land surveying. This legislation establishes the Alberta Land Surveyors Association as the regulatory organization empowered to administer on behalf of the province, the granting of, and annual renewal of, certificates of registration related to land surveying.

Land Titles Act
Alberta legislation that outlines the land titles system of administration including land title transactions and interests in land.

Land Titles Assurance Fund
An assurance to the public that owners do not suffer damage or loss from errors in title. Registered properties are protected by indefeasibility of title, which means that they are not liable to be annulled, voided or undone. The Fund is supported by fees collected by the Land Titles Offices.

Land Titles Office
The official location for processing land title documents. Alberta has 2 Land Titles Offices – 1 in Calgary and 1 in Edmonton. Otherwise, Registry Agents across the province work under licence to manage land title matters.

Land Transferee
The person to whom an interest in land is conveyed (i.e. transferred to).

Land Transferor
The person who conveys (i.e. transfers) an interest in land to another.

Land Use Bylaw
General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).

Land Use Districts
The Municipal Land Use Bylaw divides a municipality into districts. There are generally 4 broad district classifications: Residential, Commercial, Industrial and Special Districts. Each district has sub-categories for the different types of use within that land use classification.

Landlord
A person or company who leases rights of real estate use to a tenant. Also see Lease Agreement and Tenant.

Latent Defect
A physical deficiency or construction fault in a property that is not visible or discoverable through a reasonable inspection.

Law of Property Act
Alberta’s provincial statute that provides the legal framework in regard to real property rights which are the subject of instruments such as mortgages, contracts, and conveyances.

Lease (see Lease Agreement)

Lease Agreement 
A written agreement between an owner (landlord) and a tenant under which the owner allows the tenant the right of exclusive use of the property for a specified time, rent and terms. Also see Landlord and Tenant.

Leased Parking Stall
A parking stall that is part of the common property and therefore owned collectively by the condominium corporation. The use of this parking stall is essentially permanently leased to an individual owner. Responsibility and care for this parking stall is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these parking stalls are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these parking stalls are typically not differentiated from the rest of the common property.

Leased Storage Area
A storage area that is part of the common property and therefore owned collectively by the condominium corporation. The use of this storage area is essentially permanently leased to an individual owner. Responsibility and care for this storage area is often delegated to the unit owner. On Condominium Plans registered after September 1, 2000, these storage areas are illustrated using dashed lines. On Condominium Plans registered before September 1, 2000, these storage areas are typically not differentiated from the rest of the common property.

Leasehold Improvements
An addition or improvement made by a tenant to the leased premises. Leasehold improvements are more commonly associated with interior finishing and mechanical systems made by a commercial tenant pursuant to a lease agreement.

Leasehold Interest
The interest in real property by a tenant which is created through an agreement (i.e. lease) between a landlord and a tenant. Leases that are more than 3 years can be registered against the title of the property. Leases that are not registered on the title are still effective without registration.

Legal Description
The official description of land used for legal purposes. Municipalities use Plan, Block and Lot for legal land descriptions. Legal Subdivisions are used for the legal description of rural properties and Condominium Plan Numbers are used for the legal description of condominiums. A legal address is not the same as a municipal address. Also see Municipal Address.

Legal Mortgage
The first mortgage registered on title as a charge against that property. Also see First Mortgage.

Legal Subdivision
A way in which to reference subdivided land. A section has 16 Legal Subdivisions (i.e. 4 per quarter section). Each is 16 hectares (i.e. 40 acres) and numbered from the southeast to the northeast corner.

Legal Use
The use of land/property that meets the requirements of the current municipal Land Use Bylaw and, in the case of property, has been built with the proper permits as required by the municipality.

Lender
An individual or institution responsible for underwriting, funding and administering a mortgage loan and to whom real estate is pledged as security for the loan. This may include institutional lenders, non-institutional lenders, government lenders and private lenders. Also see Mortgagee.

Lender Documentation
The application and all supporting documentation provided by the mortgage brokerage industry member to the lender. Wherever possible, all supporting documentation should be provided to the lender in one package.

Lender Product Sheet
A lender product sheet describes the particulars of a specific mortgage product, including term, amortization, repayment privileges, loan to value maximum, debt servicing maximum ratios, mortgage size restrictions, underwriting criteria, applicant income, equity sources, acceptable credit history (e.g. minimum credit score, bankruptcy history) and any other details relevant to the specific lender product or program. A lender product generally targets a particular borrower type or meets a specific borrowing need in the marketplace. Product sheets are provided by lenders to mortgage brokerage industry members for their information. If a product sheet is used for a specific mortgage, it should be retained by the industry member as part of the transaction record. Also see Lender Rate Sheet.

Lender Rate Sheet 
A lender rate sheet shows the rates and fees for its product line. The rates are generally based on term, amortization, prepayment features, loan size, quickness of advance and other relevant details related to the lender’s mortgage products. The rate sheet is provided by lenders to mortgage brokerage industry members for their information. If a rate sheet is used for a specific mortgage deal, it should be retained by the industry member as part of the transaction record. Also see Lender Product Sheet.

Lessee
A person who leases property from another. May also be referred to as a tenant. Also see Tenant.

Lessor
A person or company that leases rights of use for real estate to a tenant. A lessor may also be referred to as a landlord. Also see Landlord.

Letter of Reprimand
The least severe form of discipline following a Professional Conduct Review by the Real Estate Council of Alberta. A Letter of Reprimand is typically issued to an industry professional when there is sufficient evidence of conduct deserving of sanction, but the resulting breaches are technical or minor in nature. Also see Professional Conduct Review.

Leverage
The use of borrowed funds to supplement investment.

Liability
A debt owed by an individual or organization to another individual or organization.

Liability Insurance
A type of insurance to protect against claims alleging that a person’s negligence or inappropriate action resulted in injury or damage to another person or property. 

Licence
The authorization issued by RECA to new and existing industry professionals to trade in real estate, deal in mortgages or provide real estate appraisal services in Alberta.

Licence Reciprocity 
Refers to jurisdictions that have entered into mutual recognition agreements between them to allow currently authorized real estate professionals in one jurisdiction to apply for the comparable class of licence in the other’s jurisdiction.

Licence Renewal
The activities undertaken by industry professionals on an annual basis to remain authorized by RECA in order to trade in real estate, deal in mortgages or provide real estate appraisal services in Alberta.

Licensing
Involves the process of issuing a licence to a person. Also see Licence.

Lien
A financial claim permitted by statute to be registered against the title of a property for the payment of a debt.

Lifetime Withdrawal from Industry
Industry members may apply to withdraw from industry membership under section 54 of the Real Estate Act. If Council approves an application to withdraw, all disciplinary proceedings in respect to an industry member and his/her conduct will be discontinued. As a consequence of withdrawing under s.54, the former industry member will receive a permanent, lifetime ban from the industry.

LINC (see Land Identification Number Code)

Listing
A property for which the seller has entered into a written service agreement with a real estate brokerage to market his or her property for sale.

Listing Price
The amount of money that a property that is under contract with a brokerage may be advertised to the public and marketed through various listing databases by the brokerage.

Loan Broker
A person who for compensation directly assists a person in obtaining credit or a loan of money for business or personal use, including credit or a loan made from the loan broker’s own funds.

Loan File
The file retained by the mortgage brokerage industry member containing the application and all supporting documentation. Loan files must be kept by the mortgage brokerage for no less than three years for both funded loans and non-funded loans as per the Act. Supporting documentation may be stored in hard copy or electronically. It is generally understood that Canada Revenue Agency requires retention of all files for a minimum of seven years. Also see Supporting Documents.

Loan to Value
A percentage calculation that expresses the amount of the mortgage relative to the appraised value or sale price of the property, whichever is lower.

Local Improvement
An infrastructure improvement that benefits a specific group of property owners, resulting in a local improvement levy on those properties to pay for the improvement. Both local municipalities and property owners can initiate local improvements. Property owners benefiting from a local improvement are assessed in an equitable manner, as prescribed in the Municipal Government Act.

Low-Flow Fixtures
Plumbing fixtures (e.g. toilets, showerheads, aerators) that use less water than conventional fixtures.

LTV (see Loan to Value)


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