Real Estate & Investing Dictionary
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Impact Fees
Fees that must be paid by developers of new homes and subdivisions to pay for town facilities such as schools and parks.

Impact Noise Rating
Rating system to indicate how much noise is transferred through a ceiling or floor when walking or moving furniture.

Implied Condition
A provision not explicitly stated in an agreement but considered an important item.

Implied Contract
An agreement created by actions of the parties involved but not written or spoken.

Implied Easement
Property that is used consistently for many years without challenge by the actual owner.

Implied Warranty
Under law, there is an express warranty that real estate sold is appropriate for sale and is in proper condition even if not stated.

Implied Warranty of Habitability
Legal Doctrine: all new homes are assumed to meet all building codes and are fit for habitation.

Implied Warranty of Habitability
A legal doctrine that requires landlords to offer and maintain livable premises for their tenants. If a landlord fails to provide habitable housing, tenants in most states may legally withhold rent or take other measures, including hiring someone to fix the problem or moving out.

Impound Account
An account held by the lender that is used for him or her to advance payments of certain expenses or charges that are incidental to property ownership and that may protect the lender's security.

Buildings or other structures which become part of the land.

Incidents of Ownership
Any control over property. If you give away property but keep an incident of ownership--for example, you give away an apartment building but retain the right to receive rent--then legally, no gift has been made. This distinction can be important if you're making large gifts to reduce your eventual estate tax.

Income Approach to Value
An estimate of value based on the monetary returns that a property can be expected to generate; capitalization.

Income Property
Property that is used to generate income, i.e. rented to others as either commercial or residential.

Income Statement
The income statement shows the cash flow for an entire accounting period, usually a quarter. The income statement is included in the annual report of the real estate corporation.

Any right to or interest in property interfering with its use or transfer, or subjecting it to an obligation. In connection with foreclosure property, the most likely incumbrances are mortgages and claims for unpaid taxes.

A contract.

A number, usually a percentage, upon which future interest rates for adjustable rate mortgages are based.

Index of Residential Construction Cost
Index of the costs to construct residential properties.

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, which is usually stated in the loan agreement.

Industrial Zoning
Category of property zoning that designates property to be used for industrial purposes.

Increasing price levels. A loss in the purchasing power of money. When a dollar today is worth more than that dollar tomorrow.

Inflation Equity
Increase in the value of property brought on by inflation.

Inheritance Tax
State tax based on the value of property received through inheritance. (Tax is in the US and in England.)

Initial Point
The intersection of the Base Line and Principal Meridian in sectional land descriptions.

Examination or review, which compares objects by use of an acceptable standard to rate quality and to guarantee consistency.

Inspection Clause
A stipulation in an offer to purchase that makes the sale contingent on the findings of a home inspector.

Inspection Fee
Fee paid to a professional, to determine the physical condition of a home, to supplement the information in the appraisal report and is often required by the lender.

Inspection Report
After an inspection, a written report is submitted, detailing the condition of the home's foundation, framing, plumbing, electrical system, heating, air conditioning, fireplaces, kitchen, bathrooms, roof, exterior and interior.

A person who inspects. An official examiner.

Parts of the same debt, payable at successive periods as agreed; payments made to reduce a mortgage.

Installment Loan
A loan that must be repaid in no less than two payments. A loan of six months or greater is preferable when establishing credit.

Installment Note
A note, which specifies how mortgage payments, will be made, when they will be due, and for what amount.

Installment Sale
A sale which, for income tax purposes. Is not taxed totally in the first year of the sale. To be valid there must be a minimum of two installment payments over two tax years.

Instant Equity
The difference between the property's value and what you paid for it.

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.

A written legal document.

Any writing having legal form and significance, such as a deed, mortgage, will, lease, etc.

Materials, such as fiberglass, rock wool, urethane foam, polystyrene, cellulose and vermiculite, which are used to slow heat loss. Insulation comes in different forms: blanket, batt, rigid, fill, reflective, made of glass wool, cotton or wood fibers. Organic materials must be pretreated to become insect, fire and decay resistant.

Insurable Title
A title which a title company will insure.

Insurance Binder
Temporary insurance arrangement used until a permanent policy can be issued.

Fee paid by borrower for the use of money that is loaned to them. It is a certain percent of the total of the loan.

Interest Accrual Rate
The rate at which interest is added onto the principal of a loan (accrual).

Interest Rate
The percentage of the principal amount of a loan that is charged for use of that loan. This amount determines the monthly payment.

Interest Rate
An amount a borrower must repay in addition to the full amount of the loan.

Interest Rate Cap
Maximum interest rate allowed, during an adjustment period, on the monthly payment of an adjustable rate mortgage.

Interest Rate Ceiling
Highest interest rate allowed to be charged on an adjustable rate mortgage.

Interest Rate Type
A coded value indicating the attributes of the interest rate on a loan: Code V G Blank Description Variable Rate Type Graduated Rate Type Fixed or Unavailable

Interest-only Loan
Loan, where only the interest is paid each month. Therefore, the outstanding amount of principal is not reduced.

Interim Financing
Financing, used for a short term, to bridge the gap between the purchase of a home and the sale of a home, is also called a "bridge loan". Construction loans are interim financing.

Interim Loan
Loan that is to be replaced by a permanent loan.

Internal Revenue Service
The arm of the U.S. government that collects taxes.

The state (condition) of an individual's property, who deceased without a will.

A business guest, or someone who enters property held open to members of the public, such as a visitor to a museum. Property owners must protect invitees from dangers on the property. In an example of the perversion of legalese, social guests that you invite into your home are called "licensees."

Involuntary Lien
A lien imposed against property without consent of the owner, e.g., taxes, special assessments.
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