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HUD
Home Buying Glossary - I
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Illiquidity
- An asset that is not readily convertible to cash.
Illusory
Contract - An agreement that appears to be binding but in
which one party actually is not bound; no enforceable.
Implied
Agent - An agent not expressly appointed but implied by
actions of the parties.
Implied
Contract - An agreement not expressly stated but implied
by actions of the parties.
Implied
Easement - An easement implied when the grantor conveys
property that is landlocked by other property of the grantor
or where the grantor created the use, then sold the parcels
separately.
Impound
Account - See Escrow Account.
Improved
Real Estate - Land upon which buildings and/or other
improvements have been made.
Improvements
- Any permanent structures to land such as buildings, fences
and driveways, as well as landscaping, drainage, utilities,
etc.
In
Between Lease - See Sublease.
Incentive
Zoning - Zoning that encourages particular improvements
such as zoning that allows greater height if a public plaza is
included.
Income
Approach
- A method of establishing market value by using rental income
as a factor for calculating value.
Income
Capitalization Approach - See Income Approach.
Income
Property - Property owned or purchased for the purpose of
generating income.
Incorporeal
Rights - Nonpossessor rights in real estate arising out of
ownership, such as the right to rents.
Incurable
Depreciation - Depreciation where the cost of correction
is prohibitive.
Indefeasible
- Cannot be voided.
Indemnify
- To secure against a loss of damage that may occur in the
future, or to provide compensation for a loss already
suffered.
Indemnity
Clause - See Hold-Harmless Clause.
Indenture
- A deed between two parties conveying an interest in real
property where in both parties assume obligations.
Index
- 1) Measurement used by lenders in a market to determine
changes in an accrual rate.
This can be based on a published, independent measure
of current interest rates, such as a Treasury Bill. An index
must be readily verifiable by the borrower and beyond the
control of the lender. It
provides a guideline that should accurately reflect the
current cost of lending money. 2) A measure of prevailing
market interest rates. The
index is used with the margin to determine a new interest rate
at the time of adjustment .
If the index increases, the interest rate increases
unless an interest rate cap is reached.
Often, these interest rates are the rates for U.S.
Treasury securities. Treasury
securities have become popular as indexes because they are
easy to monitor and reflect economic conditions accurately.
Index
Lease - A lease tied to an index.
Index
Method - A method of determining cost of replacement by
taking the actual costs when built and applying the increases
in the construction cost index since that date.
Indirect
Costs - Construction costs that do not involve either site
preparation or building erection (such as permits, surveys,
payroll expenses, etc.).
Industrial
District - A controlled park-like development designed to
accommodate specific types of industry, providing public
utilities, streets, railroad sidings, water and sewage
facilities.
Industrial
Park - See Industrial District.
Informal
Description - A description of property that is not a
legal descriptions, such as by street address or name of
owner.
Ingress
- The right to enter property from a public way, generally used in reference to a
property owner's access right.
Initial
Interest Rate
- The beginning interest rate at the start of an
adjustable-rate mortgage (ARM).
It may be lower than the fully indexed rate or going
market rate and it will remain constant until it is adjusted
up or down on the adjustment date.
Injunction
- A court action to cease and desist from a course of
action.
Inspection
- The service performed by an inspector that is hired to
scrutinize a home for any potential defects and deficiencies.
May also be done in order to check for hazardous substances
such as radon, asbestos, termites or lead contamination.
Installment
Loan - A loan that requires periodic payments until both
principal and interest are completely paid, such as a car
loan.
Installment
Sales Contract - A purchase agreement where the sales
price is paid in specific and timely installments and the
title is not transferred until the final payment.
Institutional
Lender -
A financial institution that invests its own funds or funds it
is managing in real estate.
For example, mutual savings banks, life insurance
companies, commercial banks, pension and trust funds, and
savings and loan associations.
Insurable
Title - Title to real property that a title insurance company will
insure. The
company issues a title insurance policy as evidence of its
insurance.
Insurance
- A contract for indemnification against loss.
Insurance
Binder - See Binder.
Insured
Loan - A loan insured by the Federal Housing Administration (FHA) or
a private mortgage guaranty insurance company.
Intangible
Property - Property that does not have value in and of
itself.
Interest
- 1) A charge for borrowing money,
It is usually expressed on an annual rate, or as a
percentage, of the money still owed. For example, the interest
rate might be 10%%. If
a person borrowed $10,000 and agrees to pay it in full at the
end of one year, the interest will be $1,000.
2) A right, share or title in property.
3) A general term meaning partial or total right to a
property. an
interest in real estate might be a right, such as an easement
(see Easement), a lease or partial or full ownership.
Interest
Only Note - A promissory note that require that only the
interest be paid during the term of the note and the payment
of the principal amount at the end of the term.
Interest
Rate - The percentage of an amount of money which is paid for its
use for a specified time; usually expressed as an annual
percentage.
Interest
Rate Cap - See Cap.
Interim
Loan - A short term loan.
Intermediate-term
Mortgage - A first mortgage with a term of less than 30
years.
Internal
Rate of Return - A method of measuring returns on
investment that considers tax consequences.
Interpleader
Action - An action requested by a party to determine
rights when two or more people claim to have an interest in
property, such as an action brought by a broker where buyer
and seller each demands the broker turn over trust funds to
him or her.
Intrinsic
Value - The actual, true, or inherent value of something
that is not based on temporary economic swings.
Inverse
Condemnation - An action by an owner to force a government
unit to take property when by its action the government has
wrongfully restricted use.
Investor
- In mortgage lending, the holder of a mortgage, or a permanent
lender for whom the mortgage banker services the loan.
Involuntary
Lien - A lien imposed without the consent of the
landowner.
Irrevocable
- Unchangeable.
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