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Here is the 'I' page
from our dictionary of
real estate terms and definitions beginning with 'implied' and ending with 'italian
villa'.
We try to provide as much information
as possible to buyers of Ocala Real Estate. These terms and definitions apply
pretty much nation wide, and we try to update with terms specifically relating
to Florida Real Estate as soon as we come across something we've missed. We
welcome your comments and suggestions!
IMPLIED:
Presumed or inferred rather than expressed.
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.
IMPOUNDS:
A trust-type account established by lenders for the accumulation of funds
to meet taxes, FHA mortgage insurance premiums and/or future insurance policy
premiums required to protect their security. Impounds are usually collected with
the note payment.
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 labor, taken out of the state of nature.
IMPROVEMENTS:
Things built on land which become a part of the real property.
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:
One of the three methods in the appraisal process; an analysis in which
the estimated income from the subject residence is used as a basis for
estimating value.
INCOME PROPERTY:
Property that produces rent.
INCOMPETENT:
One who is incapable; any person who is, by reason of age, disease,
weakness of mind or any other cause, unable, unassisted to properly manage and
take care of himself or his property, and by reason thereof, would be likely to
be deceived or imposed upon by artful or designing persons.
INCORPOREAL
PROPERTY:
Real estate in which a person has a legal interest but no right of
possession and occupation.
INCREMENT:
An increase. Most frequently used to refer to the increase of value of
land that accompanies population growth and increasing wealth in the community.
The term "unearned increment" is used in this connection since values are
supposed to have increased without effort on the part of the owner.
INCURABLE
DEPRECIATION:
The presence of a defect in an asset (i.e. a building) which is too
costly to fix.
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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:
Means of entering property.
INHERIT:
To acquire property by will or succession.
INHERITANCE TAX:
An assessment payable to a level of government based on the value of
assets inherited.
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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:
A writ or order issued under the seal of a court to restrain one or more
parties to a suit or proceeding from doing an act which is deemed to be
inequitable or unjust in regard to the rights of some other party or parties in
the suit or proceeding.
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 NOTE:
A note which provides that payments of a certain sum or amount be paid on
the dates specified in the instrument.
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.
INSTALLMENT SALES CONTRACT:
A land contract.
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 written legal document created to effect the rights of the parties.
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.
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INTANGIBLE VALUE:
An asset which is not physical. Goodwill, patent rights.
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:
The percentage of a sum of money charged for its use.
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.
INTERNATIONAL REAL
ESTATE DIGEST
The source for independent real estate information
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:
A person who dies having made no will, or one which is defective in form,
in which case his estate descends to his heirs at law or next of kin.
INTESTATE SUCCESSION:
Inheriting property when the deceased had no will or a defective will.
INVENTORY:
A list of the stock and fixtures of a business.
INVERSE
CONDEMNATION:
When the government damages property and the owner sues the government
for damages.
INVESTMENT PROPERTY:
Vacant land held for an expected increase in value.
INVOLUNTARY
CONVERSION:
Loss of land through natural forces or through government action.
INVOLUNTARY CONVEYANCE:
A transfer of title without the owner's permission.
INVOLUNTARY LIEN:
A lien imposed against property without consent of an owner; taxes,
special assessments, federal income tax liens, etc.
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:
Incapable of being recalled or revoked; unchangeable.
IRRIGATION DISTRICTS:
Quasi-political districts created under special laws to provide for water
services to property owners in the district; an operation governed to a great
extent by law.
ITALIAN VILLA:
A large, two- or three-storey house in the Latin style, with overhanging
eaves and masonry construction.
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