Real Estate Definitions - I


Implied Contract:
A contract where the agreement of the parties is demonstrated by their acts and conduct but is not formally expressed.
Inactive License:
A license held at the Real Estate Division and not currently with a Broker. It is important to realize that "inactive" is a license status, subject to division rules.
Inchoate:
An incomplete right that will occur only if certain events happen. A Dower Interest, a Curtesy Interest, a Remainderman's Interest and a Reversionary Interest are all waiting for a future event.
Income Approach:
An appraisal method based on the assumption that the value of a property is a reflection of its income producing power. Value is equal to Net Operating Income divided by its Capitalization Rate.
Income Tax Shelter:
An investment that takes advantage of the Tax Laws so as to defer the payment of tax on current income to later years where it will either be taxed at a lower amount or lower rate.
Incurable:
An appraisal term meaning that the cost to cure depreciation is more than the amount of increase in value that would result from such repair. An unwise investment.
Index Lease:
(Escalator Lease) (See Graduated Lease)
Inflation:
An economic condition where the money in circulation is excessive for the commodities on sale.
Inheritance:
The right to pass property to your heirs at your death.
Injunction:
A court order compelling a person to stop some stated action.
Installment Land Contract:
(See Land Sales Contract)
Institutional Lender:
A lender that receives its loan funds from depositors instead of investing its own funds.
Intangible Property:
(Incorporeal Property) Property that has no size, shape or physical being, such as rights.
Interest:
An estate (ownership right) in real property.
Interim Loan:
(Construction Loan) A loan to a builder during the course of construction. Typically funds are disbursed in stages drawn at certain points of completion. It is a short term, high interest rate loan expected to be replaced by a permanent loan ("take out loan") when the property is completed.
Interlocutory Decree:
A court order giving a person a specified number of days to cure a problem or suffer specific consequences. It is used in the place of the Statutory Right of Redemption in the foreclosure of a Land Sales Contract.
Intestate:
Dying with an invalid will or no will.