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Real Estate Terms / Real Estate Dictionary


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-I-

Inclusionary Zoning
An ordinance that requires a builder of a new housing development to set aside a designated number of units for low and moderate income people.

Identity Theft
A term for crimes involving illegal usage of an individual's identity. An imposter obtains key pieces of personal identify information such as Social Security numbers, driver's license numbers, bank account or credit card numbers and uses this info for their own personal gain. This is called ID Theft. This crime can include:

  • Check fraud
  • Credit card fraud
  • Financial identity theft: Using another's name and other identifying information to obtain goods and services
  • Criminal identity theft: Posing as another when apprehended for a crime
  • Identity cloning: Using another's information to assume his or her identity in daily life
  • Business or Commercial identity theft: Using another businesses name to obtain credit

Credit Card fraud is the most common form of identity theft. It can start with lost or stolen wallets, mail stolen from your mailbox, a data breach, computer hacking or virus, Internet phishing, or paper documents thrown out by you or a business (also called dumpster diving).

Income Property
Real estate developed or improved with the purpose of its existence being to produce income.

Indemnify
To compensate someone for loss or damage.

Indemnity Agreement
An agreement by which one party agrees to repay another for any loss or damage the latter may suffer.

Independent Contractor
A person who is hired to do work for another person but who is not an employee or agent of that person. The hiring person is not responsible for the actions of the Independent Contractor nor does he/she owe that Independent Contractor the same legal duties owed by an Employer to an Employee under labor and employment laws.

Index
A number used as the basis for adjusting the interest rates of adjustable rate loans (ARM). Commonly used indexes are the Prime Rate, the LIBOR and Treasury bills. A margin is added to the index to determine the interest rate that will be charged on the ARM. This interest rate is subject to any caps that are associated with the mortgage.

Inflation
The rise in price of goods and services, or Consumer Price Index (CPI), when there is an increase in the amount of money or credit available in relation to the amount of goods or services available. Moderate inflation is a result of economic growth. Hyperinflation (rising at rates of 100% or more annually) causes people to lose confidence in their economy and put their money in hard assets such as gold and real estate. Over time, inflation reduces the purchasing power of a dollar, making it worth less.

Infrastructure
The network of public facilities located within the community such as roads, parks, schools, sewers, utilities, etc.

Inheritance Taxes
The state-imposed taxes on real and personal property received through an inheritance.

Initial Interest Rate
The introductory interest rate on a loan; signals that there may be rate adjustments later in the loan. This rate changes for an adjustable-rate mortgage (ARM). Sometimes known as "start rate" or "teaser."

Inner City
A term for the older, central residential area of a municipality which, in many cases, has deteriorated into poverty.

Installment
The regular periodic payment that a borrower agrees to make to a lender.

Installment Loan
Borrowed money that is repaid in equal payments, known as installments. Also Installment Note.

Installment Sales Contract
A contract in which the buyer will pay installment payments to a seller. Title remains vested in the seller until the contracted purchase price is paid in full.

Institute of Real Estate Management
A professional organization of property managers. Affiliated with the National Association of Realtors.

Insurable Title
A property title that a title insurance company is willing to insure.

Insurance
A promise of compensation for specific potential future losses in exchange for a periodic payment.

Insurance Binder
A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the binder's expiration date.

Insurance Coverage
The total amount of insurance carried stated in monetary limits.

Insured Mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender for the lesser of the insured amount or remaining loan balance.

Interest
The fee charged for borrowing money for a specified period of time.

Interest Accrual Rate
The rate, stated as a percentage, at which interest accumulates on a mortgage.

Interest Only Loan
The borrower pays only the interest that accrues on the loan balance each month. Therefore, each payment goes toward interest and the loan balance does not get reduced.

Interest Rate
The rate of interest in effect for the monthly payment due.

Interest Rate Buydown Plan
An arrangement wherein the property seller (or other party) deposits money to an account so that it can be released each month to reduce the mortgagor's monthly payments during the early years of a mortgage. During the specified period, the mortgagor's effective interest rate has been "bought down" below the actual interest rate.

Interest Rate Ceiling
For an adjustable-rate mortgage (ARM), the maximum rate of interest that a financial institution can charge for an adjustable rate mortgage or loan.

Interest Rate Floor
For an adjustable-rate mortgage (ARM), the minimum interest rate that could be charged, as specified in the mortgage note.

Investment Property
A property that is not occupied by the owner—usually purchased specifically to generate profit through rental income or capital gains.

Investment Tax Credit
A tax credit allowed under federal law usually calculated as a fixed percentage of qualifying investments in scientific research and experimental development and in certain regions. It is designed to assist growth in specific business sectors.

IRA (Individual Retirement Account)
A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds, or mutual funds.

IREM
see
Institute of Real Estate Management

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The definitions of Real Estate Definitions found on 10Realty.com are for general information only. All information is subject to change and should be independently verified. 10Realty.com makes no representations or warranties of any nature with regard to the information found on the pages therein. 10Realty.com assumes no responsibility for any liabilities or losses claimed or incurred as a result of using this information. (Real Estate Terms, Investment Terms, Banking Terms explained, definitions, legal definitions, legal terms and definitions)

 



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