What Is a Land Lease Option? A land lease option is a clause in a real estate contract that grants the renter or lessee the right, but not the obligation, to extend his or her use of a property beyond the term specified in the contract. Usually, the renter or lessee is required to pay
What Is a Land Flip? A land flip is a fraudulent real estate practice where buyers and sellers collude to exchange a piece of undeveloped land between each other to inflate the property’s price beyond the market value. While often associated with schemes, many times land flipping, like house flipping, involves legitimate investment in undesirable
What Is Landlocked? Landlocked in the context of real estate refers to a piece of property that is inaccessible via public thoroughfare, except through an adjacent lot. A vacant lot that is located behind a strip mall and can only be reached by walking through the mall qualifies as this type of lot. Landlocked property
What Is Land Rehabilitation? Land rehabilitation is a process of restoration to bring an area of land back to its natural state after it has been damaged or degraded, making it safe for wildlife and flora as well as humans. Land rehabilitation is often carried out in response to a man-made (i.e. agricultural or industrial)
What Is a Land Trust? A land trust is a legal entity that takes ownership of, or authority over, a piece of property at the request of the property owner. Land trusts are living trusts that allow for the management of property while the owner is alive. However, like other types of trusts, each land
What Is Land Value? Land value is the value of a piece of property including both the value of the land itself as well as any improvements that have been made to it. This is not to be confused with site value, which is the reasonable value of the land assuming that there are no
What Is a Land Value Tax? A land value tax is a more predictable way to tax property based solely on the value of a parcel of land and not any associated buildings. The concept of a land value tax dates back to the beginning of agrarian societies when deciding how to tax landowners fairly for
What Is Landominium? Landominium refers to a unit, built as part of a residential development, whose owner owns both the unit and the land on which it is built. It is a portmanteau of “land” and “condominium.” Key Takeaways Landominium is play on the words “land” and “condominium”In a landominium arrangement, the developer owns both
What Is a Lapping Scheme? A lapping scheme is a fraudulent practice that involves an employee altering accounts receivables to hide stolen cash. The method involves taking a subsequent receivables payment from a transaction (for example, a sale) and using that to cover the theft. The receivable from the second transaction is covered by money
What Is a Lapse Ratio? A lapse ratio, or expiration ratio, is a measure of the number of policies issued by an insurance company that are not renewed compared to the number of policies that were active at the beginning of that same period. The ratio serves as an important indicator in the insurance industry
