[
Dictionary of Terms ]
 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
I
IMPLIED
CONTRACT created by actions but not necessarily written or
spoken.
IMPLIED
WARRANTY one that is not written but exists under the law. Contrasted
with "expressed." IMPROVED
LAND land that has some improvements. Land that has been partially
or fully developed for use.
IMPROVEMENT
RATIO the relative value of improvements to the value of unimproved
property.
IMPROVEMENTS
those additions to raw land, such as buildings, streets, sewers,
etc., tending to increase value.
IMPOUND
ACCOUNT a fund set aside for future needs.
IMPUTED
INTEREST implied interest. In a mortgage that states an insufficient
interest rate, the law will impute the rate is higher, and the
principal is less
INCHOATE
unfinished, begun but not completed. In real estate. this can
apply to (lower or curtesy rights prior to the death of a spouse.
INCOME
the money or other benefit coming from the use of Property, skill,
or business.
INCOME
APPROACH a method appraising real estate based on the property's
anticipated future income.
INCOME
MULTIPLIER the relationship of price to income.
INCOME
PROPERTY real estate that generates rental income.
INCOME
STREAM a regular flow of money generated by a business or investment.
INCOMPETENT
one not legally capable of completing a contract. Includes the
mentally ill, minors, and others considered incapable.
INCORPORATE
1. to form a corporation under regulations provided by the Secretary
of State.
INCORPOREAL
PROPERTY legal interests in real property that do not entail
the right of possession.
INCURABLE
DEPRECIATION a defect that cannot be cured or that is not financially
practical to cure; a defect in the "bone structure" of a building.
Compare curable depreciation.
INDEMNIFY
I - to protect another person against loss or damage. 2. to compensate
a party for loss or damage.
INDENTURE
a written agreement made between 2 or more persons having different
interests.
INDEPENDENT
APPRAISAL a value estimate provided by someone who does not participate
in the income or value of the property.
INDEPENDENT
CONTRACTOR a contractor who is self-employed.
INDEPENDENT
FEE APPRAISER one who estimates the value of property, has no
interest in the property, and is not associated with a lending
association or other investor.
INDEX
1. a statistic that indicates some current economic or financial
condition. Indexes are often used to make adjustments in wage
rates, rental rates, loan interest rates, and pension benefits
set by long-term contracts. 2. to adjust contract terms according
to an index..
INDEXED
LOAN a long-term loan in which the term, payment interest rate,
or principal amount may be adjusted periodically according to
a specific index. The index and the manner of adjustment are
generally stated in the loan contract.
INDEX
LEASE a rental agreement that requires changes in rent based
on a published record of cost changes. index.
INDIRECT
COSTS costs not directly associated with the structure, but incurred
during the construction period. Also called soft costs. Contrast
with direct costs.
INDUSTRIAL
PARK an area designed and zoned for manufacturing and associated
activities.
INDUSTRIAL
PROPERTY property used for industrial purposes, such as factories.
INFLATION
a loss in the purchasing power of money; an increase in the general
price level. Generally measured by the Consumer Price Index,
published by the Bureau of Labor Statistics.
INFORMATION
REPORTING reports Provided to the Internal Revenue Service (IRS),
such as commissions earned by real estate sales agents and real
estate transactions of home sellers, reported by the broker.
INFRASTRUCTURE
the basic public works of a city or subdivision, including roads,
bridges, sewer and water systems, drainage systems, and essential
public utilities.
INHERITANCE
TAX a tax, based on property value, imposed in some states on
those who acquire property from a decedent. Compare estate tax.
INJUNCTION
an order issued under the seal of a court to restrain one or
more parties to a legal proceeding, from performing an act deemed
inequitable to another party or parties in the proceeding.
INNER
CITY generally the older and more urbanized area of a large city
surrounding the central business district. The term often refers
to densely populated blighted areas characterized by low-income
residents and a high proportion of minority racial and ethnic
groups.
IN
REM Latin: "against the thing." A proceeding against the property
directly, as distinguished from a proceeding against a person
(used in taking land for nonpayment of taxes, etc.)
INSIDE
LOT in a subdivision, a lot surrounded on each side by other
lots, as opposed to a comer lot, which has road frontage on at
least 2 sides.
INSPECTION
a physical scrutinizing review of property or of documents.
INSTALLMENT
CONTRACT same as land contract
INSTALLMENTS
parts of the same debt, payable at successive periods as agreed;
payments made to reduce a mortgage.
INSTALLMENT
SALE when a seller accepts a mortgage for part of the sale, the
tax on the gain is paid as the mortgage principal is collected.
INSTALLMENT
TO AMORTIZE ONE DOLLAR a mathematically computed factor derived
from compound interest functions that offers the level periodic
payment required to retire a $1.00 loan within a certain time
frame. The periodic installment must exceed the periodic interest
rate.
INSTITUTE
OF REAL ESTATE MANAGEMENT (IREW) a professional organization
of property managers. Affiliated with the National Association
of Realtors". Publishes the Journal of Property Management. Address:
Institute of Real Estate Management 430 North Michigan Avenue
Chicago, IL 60611
INSTITUTIONAL
LENDER financial intermediaries who invest in loans and other
securities on behalf of their depositors or customers; lending
and investment activities are regulated by laws to limit risk.
INSTRUMENT
a written legal document, created to establish the rights and
liabilities of the parties to it.
INSURABLE
INTEREST an interest in a person or property that would cause
one a loss if that person or property were injured. Must be present
to collect from an insurance policy.
INSURABLE
TITLE a title that can be insured by a title insurance company.
INSURABLE
VALUE the cost of total replacement of destructible improvements
to a property.
INSURANCE
COVERAGE total amount and type of insurance carried.
INSURANCE
(MORTGAGE) a service, generally purchased by a borrower, that
will indemnify the lender in case of foreclosure of the loan.
Indemnification is generally limited to losses suffered by the
lender in the foreclosure process.
INTANGIBLE
VALUE value that cannot be seen or touched. Example: The goodwill
of an established business is an intangible value.
INTEREST
1. cost of the use of money. 2. the type and extent of ownership.
INTEREST
DEDUCTIONS (UNDER THE 1986 TAX ACT) Investment Interest. Investment
interest deductions are limited to net investment income, which
includes interest, dividends, long-term capital gains and income
or loss from working interests in oil and gas interests. However,
net investment income includes neither rental nor other passive
activity income or loss, nor interest paid to buy an ownership
in a passive activity.
INTEREST-ONLY
LOAN a loan in which interest is payable at regular intervals
until loan maturity, when the full loan balance is due. Does
not require amortization. Contrast with self-amortizing mortgage.
INTEREST
RATE 1. the percentage of a sum of money charged for its use.
2. the rate of return on an investment.
INTERIM
FINANCING a loan, including a construction loan, used when the
property owner is unable or unwilling to arrange permanent financing.
Generally arranged for less than 3 years, used to gain time for
financial or market conditions to improve.
INTERNAL
RATE OF RETURN (IRR) the true annual rate of earnings on an investment.
Equates the value of cash returns with cash invested. Considers
the application of compound interest factors. Requires a trial-and-error
method for solution.
INTERNAL
REVENUE CODE the law, passed by Congress, that specifies how
and what income is to be taxed, and what may be deducted from
taxable income.
INTERNAL
REVENUE SERVICE (IRS) an agency of the federal government that
is responsible for the administration and collection of federal
income taxes. The IRS prints and distributes tax forms and audits
tax returns.
INTERNATIONAL
ARCHITECTURE an early-twentieth century-style house whose design
is very simple with no ornamentation. The windows appear to be
continuous rather than a earn to be holes in the walls.
INTERNATIONAL
ASSOCIATION OF ASSESSING OFFICERS (IAAO) a professional organization
of property tax assessors. Awards the designation of Certified
Assessment Evaluator (CAE). Publishes the quarterly Assessors
Journal. Address: International Association of Assessing Officers
1313 East 60th Street Chicago, IL 60637
INTERNATIONAL
REAL ESTATE FEDERATION an organization with worldwide membership
that is devoted to encouraging private rights to real estate.
The international abbreviation is FIABCI; its American chapter
is an affiliate of the National Association of Realtors.
INTERNATIONAL
RIGHT OF WAY ASSOCIATION (IR/WA) an individual membership association
(no corporate membership) that offers courses covering various
phases of right-of-way work. Educational curriculum includes
law, engineering, appraisal. Offers a designation, SR/WA, and
a bimonthly magazine. Address: International Right of Way Association
13650 S. Grammercy Place, Ste. 100 Gardena, CA 90249- (3 10)
538-0233
INTERSTATE
LAND SALES ACT a federal law, administered by the Department
of Housing and Urban Development (HUD), which requires certain
disclosures and advertising procedures when selling land to purchasers
in other states.
INTERVAL
OWNERSHIP same as time-sharing.
INTER
VIVOS during one's life.
INTESTATE
1. (adj.) having made no valid will. 2. (noun) a person who dies
leaving no will or leaving one that is defective. Property goes
to the legal heirs of the intestate.
INVENTORY
property held for sale or to be used in the manufacture of goods
held for sale. Does not qualify for capital gains tax treatment.
INVERSE
CONDEMNATION a legal procedure to obtain compensation when a
property interest has been taken or diminished in value by a
government activity.
INVESTMENT
VALUE the estimated value of a certain real
INVOLUNTARY
CONVERSION condemnation or sudden destruction by nature
INVOLUNTARY
LIEN a lien imposed against property without consent of the owner
INVESTMENT
LIFE CYCLE the time span from acquisition of an investment to
final disposition
INWOOD
ANNUITY FACTOR a number that, when multiplied by the periodic
payment from a level payment income, stream, indicates the present
value of the income stream, stream, based on a specific interest
rate
INWOOD
TABLES a set of annuity factors for various interest rates and
maturities.
IREM
Institute of Real Estate Management
IRR
internal rate of return.
IRREVOCABLE
incapable of being recalled or revoked; unchangeable.
IRS
Internal Revenue Service.
IRIWA
International Right of Way Association.
ITALIAN
VILLA a Latin-style, massive 2- or 3-story house of masonry with
large overhanging eaves.
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