IMPLIED CONTRACT created by actions but not necessarily written or spoken.
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IMPLIED WARRANTY one that is not written but exists under the law. Contrasted with
"expressed."
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IMPROVED LAND land that has some improvements. Land that has been partially or
fully developed for use.
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IMPROVEMENT RATIO the relative value of improvements to the value of unimproved
property.
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IMPROVEMENTS those additions to raw land, such as buildings, streets, sewers, etc.,
tending to increase value.
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IMPOUND ACCOUNT a fund set aside for future needs.
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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
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INCHOATE unfinished, begun but not completed. In real estate. this can apply to
(lower or curtesy rights prior to the death of a spouse.
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INCOME the money or other benefit coming from the use of Property, skill, or
business.
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INCOME APPROACH a method appraising real estate based on the property’s
anticipated future income.
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INCOME MULTIPLIER the relationship of price to income.
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INCOME PROPERTY real estate that generates rental income.
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INCOME STREAM a regular flow of money generated by a business or investment.
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INCOMPETENT one not legally capable of completing a contract. Includes the mentally
ill, minors, and others considered incapable.
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INCORPORATE 1. to form a corporation under regulations provided by the Secretary of
State.
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INCORPOREAL PROPERTY legal interests in real property that do not entail the right
of possession.
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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.
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IOEMNIFY I - to protect another person against loss or damage. 2. to compensate a
party for loss or damage.
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INDENTURE a written agreement made between 2 or more persons having different
interests.
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INDEPENDENT APPRAISAL a value estimate provided by someone who does not participate
in the income or value of the property.
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INDEPENDENT CONTRACTOR a contractor who is self-employed.
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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.
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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..
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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.
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INDEX LEASE a rental agreement that requires changes in rent based on a published
record of cost changes. index.
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INDIRECT COSTS costs not directly associated with the structure, but incurred
during the construction period. Also called soft costs. Contrast with direct costs.
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INDUSTRIAL PARK an area designed and zoned for manufacturing and associated
activities.
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INDUSTRIAL PROPERTY property used for industrial purposes, such as factories.
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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.
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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.
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INFRASTRUCTURE the basic public works of a city or subdivision, including roads,
bridges, sewer and water systems, drainage systems, and essential public utilities.
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INHERITANCE TAX a tax, based on property value, imposed in some states on those who
acquire property from a decedent. Compare estate tax. .
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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.
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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.
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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.)
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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.
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INSPECTION a physical scrutinizing review of property or of documents.
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INSTALLMENT CONTRACT same as land contract
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INSTALLMENTS parts of the same debt, payable at successive periods as agreed;
payments made to reduce a mortgage.
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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.
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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.
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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
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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.
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INSTRUMENT a written legal document, created to establish the rights and
liabilities of the parties to it.
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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.
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INSURABLE TITLE a title that can be insured by a title insurance company.
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INSURABLE VALUE the cost of total replacement of destructible improvements to a
property.
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INSURANCE COVERAGE total amount and type of insurance carried.
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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.
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INTANGIBLE VALUE value that cannot be seen or touched. Example: The goodwill of an
established business is an intangible value.
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INTEREST 1. cost of the use of money. 2. the type and extent of ownership.
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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.
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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.
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INTEREST RATE 1. the percentage of a sum of money charged for its use. 2. the rate
of return on an investment.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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.
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INTERVAL OWNERSHIP same as time-sharing.
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INTER VIVOS during one's life.
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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.
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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.
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INVERSE CONDEMNATION a legal procedure to obtain compensation when a property
interest has been taken or diminished in value by a government activity.
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INVESTMENT VALUE the estimated value of a certain real
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INVOLUNTARY CONVERSION condemnation or sudden destruction by nature
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INVOLUNTARY LIEN a lien imposed against property without consent of the owner
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INVESTMENT LIFE CYCLE the time span from acquisition of an investment to final
disposition
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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
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INWOOD TABLES a set of annuity factors for various interest rates and maturities.
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IREM Institute of Real Estate Management
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IRR internal rate of return.
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IRREVOCABLE incapable of being recalled or revoked; unchangeable.
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IRS Internal Revenue Service.
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IRIWA International Right of Way Association.
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ITALIAN VILLA a Latin-style, massive 2- or 3-story house of masonry with large
overhanging eaves.
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