| illiquid assets |
assets that cannot be quickly converted into cash; such as baseball card
collection, stamp collections, real estate, automobiles, or other
personal property |
| implied contract |
A contract under which the agreement
of the parties is demonstrated by their acts and conduct.
|
| improvement |
1. Improvements on land—any
structure, usually privately owned, erected on a site to enhance the
value of the property; for example, buildings, fences, and driveways.
2. Improvement to land—usually a publicly owned structure,
such as a curb, sidewalk, street, or sewer.
|
| inchoate right |
A wife’s interest in the land of her
husband during his life, which upon his death may become a dower
interest.
|
| income approach |
The process of estimating the value of an
income-producing property by capitalization of the annual net income
expected to be produced by the property during its remaining useful
life.
|
| incorporeal right |
A nonpossessory right in real
estate; for example, an easement or right-of-way. 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 to
how he or she performs the act. Unlike an employee, an independent
contractor pays for all his or her expenses and income and social
security taxes and receives no employee benefits. Many real estate
salespeople are independent contractors.
|
| informed consent exception |
A provision in many state real
estate license laws that permits a broker to represent both buyer and
seller to a transaction if he or she has their prior mutual consent to
do so.
|
| installment contract |
See
CONTRA CT FOR DEED.
|
| installment sale |
A method of reporting income
received from the sale of real estate when the sales price is paid in
two or more installments over two or more years. If the sale meets
certain requirements, a taxpayer can postpone reporting such income to
future years when his or her other income may be lower.
|
| interest |
A charge made by a lender for the use of
money.
|
| interest only loan |
a short-term loan in which only the principal is paid in monthly
installments. |
| interest rate |
The charge or cost for borrowing money, expressed as
a percentage. Interest rate is usually defined over a period of one
year. |
| interest rate cap |
Currently, lifetime interest rate caps on all ARM's have been
initiated by law. Most ARM's limit interest rate
increases/decreases to 5-6% with 5% being the standard. |
| interim financing |
A short-term loan usually made
during the construction phase of a building project, often referred to
as a construction loan.
|
| intestate |
The condition of a property owner who dies
without leaving a valid will. Title to such property will pass to his or
her heirs as provided in the state law of descent.
|
| investment |
Money directed toward the purchase, improvement, and development of
an asset in expectation of income
or
profits.
|
| involuntary alienation |
Loss of property due to
attachment, bankruptcy, lien, foreclosure, or sale of taxes. See
ALIENATION.
|
| irrevocable consent |
An agreement filed by an out-of-state
broker in the state in which he or she wishes to be licensed, stating
that suits and actions may be brought against the out-of-state licensee
in the state in which the agreement is filed.
|
