Real Estate Glossary I

Impact fees - Fees collected from developers of new homes to pay for schools, parks and other facilities.

Impound account - A trust account established for the primary purpose to set aside funds for future needs.

Impounds - A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.

Improved land - Real property whose value has been enhanced by the addition of onsite and off site and off site improvements such as roads, sewers, utilities, buildings, etc.; as distinguished from raw land.

Improvements - Valuable additions made to property, amounting to more than repairs, costing labor and capital and intended to enhance the value of the property. Improvements of land would include grading, sidewalks, sewers, streets, utilities, etc. Improvements on land would include buildings, fences, and the like.

Imputed interest - Interest implied by the federal tax law.

Income approach - An approach to the valuation or appraisal of real property as determined by the amount of net income the property will produce over its remaining economic life.

Incorporeal rights - Intangible or non-possessory rights in real property such as easements, licenses, profits and the like.

Incurable defect - A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.

Independent contractor - One who is retained to perform a certain act, but who is subject to the control and direction of another only as to the end result and not as how he performs the act. The critical feature, and what distinguishes an independent contractor and an employee or agent, is the right to control.

Index - Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.

Individual retirement account tax - Deferred savings accounts that allow people to accrue retirement funds.

Industrial park - An area zoned industrial and containing sites for many separate industries and developed and managed as a unit, usually with provisions for common services for the users.

In-file credit report - Computer generated reports drawn from credit repositories that are generally regarded as objective histories.

Infill development - Any significant new construction in an established area.

Infill housing - Home construction in established areas.

Inflation - This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.

Infrastructure - The roads, schools, parks, utilities, bridges and communications systems in a community.

Initial interest rate - The original interest rate on an adjustable mortgage.

Injunction - A legal action which forbids a party defendant from doing some act; it requires a person to whom it is directed to refrain from doing a particular thing.

Installment contract - A purchase agreement in which the buyer does not receive title to the property until all installments are paid.

Institutional lender - Financial institutions such as banks, insurance companies, savings and loans or any lending institution whose loans are regulated by law.

Insulation - Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.

Insurable title - Title to property that a company agrees to insure against defects and disputes.

Insurance - Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.

Insurance binder - A temporary insurance arrangement usually put in force until a permanent policy can be obtained.

Interest accrual rate - The rate at which interest accrues on a mortgage.

Interest rate - The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax deductible.  deductible.

Interest rate buy-down plans - For cash short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.

Interest rate caps - A limit on the amount that can be charged to the monthly payment of an adjustable rate mortgage during an adjustment period. rate mortgage during an adjustment period.

Interest rate ceiling - The highest interest a lender can charge for an adjustable rate mortgage. rate mortgage.

Interest-only loan  - The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interim financing - A short-term loan usually made during the construction phase of a building project; often referred to as the "construction loan."

Intestate - To die without a valid will.

Inventory - An itemized list of property. Many brokers recommend that their clients attach to the sales contract an inventory of property to be included in the sale of a residential property, including a condominium dwelling.

Inverse condemnation - An action for "just compensation "brought by one whose property has been effectively "taken" or substantially interfered with or taken without just compensation

Investment property - Real estate that generates income, such as an apartment building or a rental house.