Land Contract
When 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. (Also see Owner Financing.)

Lien
A legal claim on a property used as security for a debt.

Loan-To-Value Ratio
The relationship between the amount of the mortgage and property value, usually shown as a percentage.