|
Real
Estate Dictionary - I
Find
the meaning of all the key terms used in Real Estate Vocabulary. Click on
the corresponding letter to find the word, which are all listed in
alphabetical order. We hope this service helps you further.
Select
the Letter that Correspond to the word
IMPLIED CONTRACT:
An agreement which is not reduced to writing but is created, under the
common law, on the basis of the behavior of the parties which suggests
that they are acting under an agreement.
IMPLIED WARRANTY:
A guarantee of the condition of a thing or the truth of a statement which
is created as a result of the actions of a party but not written down.
IMPOUND:
The portion of a borrower's periodic payment on a loan that is collected
to pay for items other than principal, interest or penalties (such as
realty taxes, insurance premiums, etc.).
IMPOUND ACCOUNT:
The trust account held by a lender into which payments for insurance,
taxes, etc., paid by the borrower are placed prior to being disbursed by
the lender.
IMPROVED LAND:
Also known as "developed land". Opposite of "raw or vacant
land". Land which someone has, by dint of their labour, taken out of
the state of nature.
IMPROVEMENTS:
Things added to vacant land with the view to increasing its usefulness and
value, such as buildings, parking areas, drainage works, etc.
IMPROVEMENT RATIO:
A comparison of the value of the improvements of a property with the value
of the property without the improvements.
IMPUTED INTEREST:
Interest which is deemed to have been charged on a loan by a court.
IN REM:
Latin term meaning "Against the thing." Used to describe a legal
action which is taken against land rather than against the land owner,
such as a bank's foreclosure on a defaulted mortgage.
INCHOATE:
Describes something that has been begun but never completed or a right
that has arisen but is not yet enforceable (such as Dower rights).
INCOME APPROACH:
An appraisal technique whereby the potential of the property to produce
income is used to assess its value.
INCOME PROPERTY:
A property which is owned or developed specifically to produce income for
its owner.
INCOMPETENT:
Not capable, usually in the mental sense. When referring to a contract or
will, a person who is not legally capable of signing and being bound to
such a document.
INCORPOREAL PROPERTY:
Real estate in which a person has a legal interest but no right of
possession and occupation.
INCURABLE DEPRECIATION:
The presence of a defect in an asset (i.e. a building) which is too costly
to fix.
INDEMNIFY:
To take responsibility for the losses and damages suffered by another
person.
INDEMNITY:
A document in which one party agrees to take responsibility for the losses
and damages suffered by another party or parties.
INDENTURE:
Similar to a contract. An agreement between two or more parties, often
referring to land.
INDEPENDENT APPRAISAL:
An estimate of the value of a property prepared by someone who has no
interest in the property or, if a mortgage is involved, in the lender.
INDEPENDENT CONTRACTOR:
A legal term for a person who is hired to do work for another person but
who is not an employee or agent of that person. The hiring person is not
responsible for the actions of the Independent Contractor nor does she owe
that Independent Contractor the same legal duties owed by an Employer to
an Employee under labor and employment laws.
INDEX:
Any rate published by an independent third party (the government, the
federal bank, etc.) which serves as the base for calculating a variable
item in a contract. (A Variable or Adjustable Rate Mortgage may use the
Federal Bank's monthly prime interest rate as the index for the interest
charged under that mortgage).
INDEXED LEASE:
A rental agreement where the amount of the rent to be paid changes in
accordance with changes in a specified index (i.e. the cost of living
index).
INDEXED LOAN:
Any loan whose interest rate is adjusted in accordance with a rate
published by an independent third party (an "index").
INDIRECT COSTS:
Also known as "soft costs", those costs which are not
automatically considered in a construction project.
INDUSTRIAL PARK:
A parcel of land specifically developed to provide lots for industrial
activities.
INDUSTRIAL PROPERTY:
A plot of land used for a factory or other industrial use.
INFRASTRUCTURE:
Term for the public-use improvements made to an area such as sewers,
roads, bridges, and public utility installations.
INGRESS:
The right to enter over a parcel of land not owned by you but not to
occupy the land.
INHERITANCE TAX:
An assessment payable to a level of government based on the value of
assets inherited.
INITIAL INTEREST RATE:
The rate chargeable on a mortgage on the day it is signed.
INITIAL RATE PERIOD:
The period of time for which the "initial interest rate" is
guaranteed on a Variable or Adjustable
Rate mortgage before it begins to change according to its
"index".
INJUNCTION:
An order of a court to stop a party from committing the act specified in
the order.
INNER CITY:
A slang term for the older, central residential area of a municipality
which, in many cases, has deteriorated into poverty.
INSIDE LOT:
Term for a property that is not on a corner at the intersection of two
roads.
INSPECTION:
A physical examination of a person, document or other thing, such as a
home.
INSPECTOR:
Any person charged with the task of making a physical examination of a
person, document or other thing. Could be employed by a government body
(i.e. an electrical inspector, fire inspector) or by a potential purchaser
(a home inspector).
INSTALLMENT:
A regular periodic payment.
INSTALLMENT CONTRACT:
Same as land contract.
INSTALLMENT LOAN:
A loan which is paid back in periodic payments.
INSTALLMENT SALE:
The sale of a property with the Vendor taking back a mortgage from the
purchaser and paying the taxes on the sale proceeds as they are collected.
INSTITUTIONAL LENDER:
An accredited financial organization (i.e. a bank, trust company, credit
union, etc.) which offers loans.
INSTITUTIONAL MORTGAGE:
A loan secured against real property offered to the land owner by a bank,
credit union, trust company or other accredited financial organization.
Opposite of "private mortgage".
INSTRUMENT:
A legal document in written form setting out certain rights of parties to
it.
INSURABLE INTEREST:
A legal right to a property which results in the holder of that right
suffering damages in the event of the destruction of the property.
INSURABLE TITLE:
Ownership of land which a Title Insurance Company is willing to insure.
INSURABLE VALUE:
The cost of replacement of all improvements to a property which could
conceivably be destroyed.
INSURANCE:
A contract in which one party agrees to compensate another party for any
losses or damages caused by risks identified in the contract in exchange
for the payment of a lump sum or periodic amounts of money to the first
party.
INSURANCE BINDER:
Written evidence that insurance is in effect with regard to the property
and the risks set out in the binder. Temporary in nature, the binder
assures coverage until permanent coverage can be arranged.
INSURANCE COVERAGE:
Term to describe the monetary limits and risks covered as set out in a
contract or policy of insurance.
INSURED CLOSING LETTER:
A promise by a Title Insurance Company to a lender to pay for all costs
and losses to the lender which might result from the actions of the
Company's closing agent while closing a transaction.
INSURED MORTGAGE:
A loan secured against land for which an insurance policy exists promising
to compensate the lender for all losses and costs resulting from the
borrower's failure to meet her obligations under the loan agreement.
INTER VIVOS:
Latin meaning "during life". Used to describe a gift made during
a person's lifetime (as opposed to a bequest in a will) or a trust.
INTEREST:
1. A person's legal right to an asset or property.
2. The cost of borrowing money, charged as a percentage of the outstanding
amount owed.
INTEREST ADJUSTMENT DATE:
The date upon which the borrower is required to pay accrued interest on
the borrowed principal under a mortgage, which date falls one full payment
interval before the first payment date as set out in the agreement. For
example, if a mortgage is advanced on May 15 to be paid on the first day
of each month, June 1 would be the interest adjustment date and July 1 the
first payment date. On June 1, the borrower would be required to pay the
interest that has accrued on the principal since the date of the advance
(May 15).
INTEREST ACCRUAL RATE:
The rate, stated as a percentage, at which interest accumulates on a
mortgage.
INTEREST PAYMENT:
The portion of each periodic payment on a loan, expressed in dollars,
which is allocated toward accrued interest.
INTEREST RATE ADJUSTMENT
PERIOD:
The length of time between changes in interest rate on an Adjustable or Variable
Rate Mortgage.
INTEREST RATE BUY DOWN
PLAN:
A method of reducing the effective interest charged to a borrower. A third
party (often a vendor) deposits a lump sum into an account, portions of
which are then used to reduce the amount required from the borrower for
each periodic payment over a set period of time.
INTEREST RATE CAP:
A clause in an Adjustable or Variable
Rate Mortgage which limits the change in the interest rate
charged. May limit change within a single adjustment period or over the
life of the mortgage.
INTEREST RATE CEILING:
The highest rate of interest chargeable under a Variable or Adjustable
Rate Mortgage, as set out in the mortgage contract.
INTEREST RATE FLOOR:
The lowest rate of interest chargeable under a Variable or Adjustable
Rate Mortgage, as set out in the mortgage contract.
INTEREST-ONLY LOAN:
A debt for which the periodic payments are enough to pay only the interest
which accumulates on the principal over the payment period. Principal is
due at maturity.
INTERIM FINANCING:
1. A construction loan to pay for costs up to completion;
2. Another name for a bridge loan, a short-term loan designed to cover a
gap of time between the purchase of a new home and the sale of the old
when equity becomes available.
INTERNATIONAL ARCHITECTURE:
Simple style of house, with little or no ornamentation.
INTERSTATE LAND SALES ACT:
Federal law administered by HUD regulating the practice of the sale of
land between people in different states.
INTERVAL OWNERSHIP:
Where title in a property is shared among a group of people, each of whom
is entitled to occupation of the property for a specified period of time
each year. Also known as "time-sharing".
INTESTATE:
1. A person who dies without leaving a will.
2. A description of having died without leaving a will.
INVERSE CONDEMNATION:
A court remedy for a private land owner whose interest or ownership in
land has been interfered with or taken away outright by a governmental
body.
INVESTMENT PROPERTY:
A piece of real estate that is owned for the purposes of financial gain,
either through appreciation in value or through income from the property
INVOLUNTARY CONVERSION:
Loss of land through natural forces or through government action.
INVOLUNTARY LIEN:
A claim registered against a property without the consent (and sometimes
without the knowledge of) the owner of the land.
IRREVOCABILITY DATE:
Time and day specified in an offer until which the offeror may not retract
the offer, until which the offeree may accept the offer.
IRREVOCABLE:
Unchangeable. Not able to be recalled.
ITALIAN VILLA:
A large, two- or three-storey house in the Latin style, with overhanging
eaves and masonry construction.
|
