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Term Definition
Land ContractWhen the buyer agrees to make payments directly to the seller at pre-negotiated terms. The seller agrees to deed the property to the buyer upon completion of the agreement. The buyer becomes the owner of equity in this type of sale.
 
LienA legal claim on a property used as security for a debt.
 
Loan-To-Value RatioThe relationship between the amount of the mortgage and property value, usually shown as a percentage.
 


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