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### l

- Land, ImprovedLand that has been made more valuable by the application of labor or labor and capital to it or public property adjacent to it.
- Land, Parcel ofSee parcel.
- Law of Variable ProportionsOften called law of decreasing returns or the law of proportionality. States that when the quantity of one productive service is increased by equal increments, the quantities of other productive services remaining fixed, the resulting increment of product will decrease after a certain point.
- LeaseA written contract by which the lessor (owner) transfers the rights to occupy and use real or personal property to another (lessee) for a specified time in return for a specified payment (rent).
- Legal DescriptionA delineation of dimensions, boundaries, and relevant attributes of a real property parcel that serve to identify the parcel for all purposes of law. The description may be in words or codes, such as metes and bounds or coordinates (see coordinate system). For a subdivided lot, the legal description would probably include lot and block numbers and subdivision name.
- LesseeThe person receiving a possessory interest in property by lease, that is, the owner of a leasehold estate.
- LessorThe person granting a possessory interest in property by lease, that is, the conveyor of a leasehold estate, the holder of a leased fee estate.
- Level of AppraisalThe common, or overall, ratio of appraised values to market values. Three concepts are usually of interest: the level required by law, the true or actual level, and the computed level, based on a ratio study.
- Level of Assessment; Assessment RatioThe common or overall ratio of assessed values to market values. Compare level of appraisal. Note: The two terms are sometimes distinguished, but there is no convention determining their meanings when they are. Three concepts are commonly of interest: what the assessment ratio is legally required to be, what the assessment ratio actually is, and what the assessment ratio seems to be, on the basis of a sample and the application of inferential statistics. When level of assessment is distinguished from assessment ratio, "level of assessment" usually means either the legal requirement or(...)
- Life, EconomicSee economic life.
- Life, PhysicalThe period over which a physical property is capable of functioning without being scrapped or reconstructed.
- Linear RegressionA kind of statistical analysis used to investigate whether a dependent variable and a set of one or more independent variables share a linear correlation and, if they do, to predict the value of the dependent variable on the basis of the values of the other variables. Regression analysis of one dependent variable and only one independent variable is called simple linear regression, but it is the word simple (not linear) that distinguishes it from multiple regression analysis with its multiple independent variables.
- Loan-To-Value Ratio (M)The relationship (usually as a percentage) between the amount of a mortgage and the value of the security pledged as security for the mortgage.
- Location Value Response Surface AnalysisA mass appraisal technique that involves creating value influence centers, computing variables to represent distances (or transformations thereof) from such points and using the variables in a multiple regression or other model to capture location influences. Implementation of the technique is enhanced by the use of a geographic information system. Some geographic information systems permit the value influence centers to be displayed and measured as a three-dimensional grid surface, the results of which can be likewise used in calibration techniques to arrive at the contribution of(...)
- Location VariableA variable, such as the distance to the nearest commercial district or the traffic count on an adjoining street, that seeks to measure the contribution of locational factors to the total property value.
- Locational ObsolescenceA component of economic obsolescence; loss in value due to suboptimal siting of an improvement.
- Log-Linear RelationshipA correlation between two variables such that if the value of one variable changes by a certain percentage, the value of the other changes by a certain amount. (Recall that logarithms permit multiplication to be done by means of adding logs.) For example, there is a log - Linear relationship between x and y in the following sequence:
- Logarithm; LogThe number that, when used as an exponent for another number (called the base), results in a third number of some practical interest (called the antilogarithm). There are two bases that are used with any frequency; the base 10 produces what are called common logarithms, and the base 2.71828 (e) produces what are called natural logarithms. For example, log (10)100 = 2; 10 =100. Logarithms were originally used to simplify complex calculations involving multiplications inasmuch as two numbers can be multiplied by adding their logarithms and taking the antilog of the result.
- Long-Lived ItemsItems that are the basic structure of a building and are not usually replaced during economic life. For example: foundation, roof structure, and framing.

**Sources:**

a) AVMetrics

b) AVMs 201: A Practical Guide to the Implementation of Automated Valuation Models, Jim Kirchmeyer, 2008.

c) IAAO 2015, Glossary for Property Appraisal and Assessment, 2015. (2013 online: https://www.iaao.org/media/Pubs/IAAO_GLOSSARY.pdf )

d) Collateral Assessment & Technologies Committee, Summary of Definitions & Terms, 2006.

e) Joint Industry Task Force on AVMs, IAAO Standard on AVM Glossary, September 2003. https://www.iaao.org/media/standards/AVM_STANDARD.pdf

f) Appraisal Institute, Joint Industry Task Force on Automated Valuation Models, Work Group Terminology, 2005.

g) Merriam-Webster (https://www.merriam-webster.com/)