Like many other industries, the real estate industry has its own unique language and vocabulary. Without some knowledge of this specialized language, you may find yourself a bit confused if you become involved in a real estate transaction.

Whether entering the real estate market for the first time or if you have invested before, this handy reference will provide an understanding of basic real estate words and phrases.

Leasehold – The right to possession and use of land for a fixed period of time. The lease is the agreement that creates the right.

Lessee – A tenant holding a leasehold.

Lessor – A landlord; one who gives a leasehold to a lessee.

License – Permission to go upon or use the land of another, the permission being a personal privilege and not constituting an interest in the land. (Could also refer to a real estate agent or builder holding a “license” in the state of Michigan .

Lien – A monetary charge imposed on a property, usually arising from some debt or obligation.

Lien Waiver – Also called “waiver of liens”. A waiver of construction (a/k/a mechanic's) lien rights, signed by contractors, subcontractors or material suppliers.

Link – In surveying, a length of 7.92 inches.

Loan Policy – Also called “mortgage policy”. A title insurance policy insuring a mortgagee (lender), or beneficiary (assignee) under a mortgage, against loss caused by invalidity or unenforceability of a lien, or loss of priority of the mortgage.

Lis Pendens – A legal notice intending to bind third parties of litigation claiming an interest in real estate. A recorded public notice of pending litigation (could effect the property being purchased or mortgaged).

Lot – Generally, any portion or parcel of real property. Usually refers to a portion of land in a platted subdivision.