Real Estate Glossary "I"
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
immobility - A physical characteristic of real estate, meaning that land cannot be moved. implied contract - An agreement created by the actions of the parties. impound account - An account maintained by the lender that holds money collected from the borrower for the payment of real estate taxes and insurance. Also called an escrow or a reserve account. improvements - Additions to a property that are created artificially rather than by nature. income approach - An approach to estimating the value of property by finding the net income and applying it with the capitalization rate. The value of the subject property is estimated by (1) finding the annual potential gross income, (2) subtracting a vacancy rate to find the effective gross income, (3) subtracting operating expenses to find the net income, (4) finding the capitalization rate and (5) applying the capitalization rate to the subject property. See also capitalization rate. increasing and diminishing returns - The relationship between the cost of improvements and the value they add to the property. Improvements may initially add substantial value (increasing return) but will reach a point where they add less value (diminishing return). A principle of value used in appraisal. incurable depreciation - When present, the cost of fixing the property will be more than the increase in value or the corrections are not physically possible. Used in appraisal. independent contractor - A working relationship between a broker and his or her sales agents in which the broker can control what the agent will do but not how it will be done. The broker cannot withhold for taxes or Social Security or provide benefits. See also employee. indestructibility - A physical characteristic of real estate meaning that land cannot be destroyed. index lease - A lease agreement in which the rent changes are based on some common economic index. industrial property - Property used in industry, such as factories. in gross - See easement in gross. installment sale method - A method of selling real estate in which the gain on the sale is received from the buyer over several years and recognized as a taxable gain over the same period. installment sales contract - A sales contract in which the buyer takes possession of the property but the seller retains title until the loan is paid. Institute of Real Estate Management (IREM) - The largest property management organization. It is affiliated with the National Association of REALTORS®. instrument - A legal document such as a contract, deed or note. insured loans - A loan insured by FHA or a private mortgage insurance company that protects the lender against default. intangible property - Personal property represented by a document but that cannot be detected by the senses. Stock certificates are a representation of intangible property. interim financing - A short-term loan often used to finance real estate construction. Interstate Land Sales Full Disclosure Act - A federal law that regulates the sale of real estate across state lines (in interstate commerce) under certain conditions. inter vivos trust - A living trust created by an owner during his or her lifetime. intestate - Having died without making a will. inverse condemnation - Forcing the state to buy an owner's property if government action has forced loss of value or inability to use the property. involuntary alienation - Transferring title to real estate without the will and consent of the owner. involuntary lien - A lien that is created by law, either by statute or by a court. |
|