Real Estate Glossary

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IMPLIED - Something apparent from the circumstances, rather than from direct action or communication.

IMPLIED CONTRACT - A binding contract created by the actions of principals, rather than by written or oral agreement of the parties.  An Implied Contract may not be enforceable in court.

IMPROVEMENTS - Generally, buildings, but may include any permanent structure or other development, such as a street, utilities, etc.

INCUMBRANCE (ENCUMBRANCE) - A claim, lien, charge, or liability attached to and binding real property.  Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.

INDEMNITY AGREEMENT - An agreement by which one party agrees to compensate another for any loss or damage the latter may suffer.

INDEPENDENT APPRAISAL - An appraisal by one who has no interest in the property or nothing to gain from a high or low appraisal.

INDEX - A factor used to calculate the interest on an adjustable rate mortgage.

INDORSEMENT (ENDORSEMENT) - The act of the holder of a note, bill, check, or other negotiable instrument, of assigning said instrument by signing the back of the instrument, with or without qualifications.

INGRESS AND EGRESS - A right to enter upon and pass through land.

IN GROSS - Personal rather than attached to land.  An easement in gross has no dominant tenement.

IN PERPETUITY - Of endless duration; forever.

INSPECTION - An examination of property for various reasons, such as a termite inspection, inspection to see if required repairs were made before funds were released.  To determine the general condition of a building.

INSTALLMENT SALE OR CONTRACT - A tax term used to describe a sale which is usually accomplished by use of a land contract.  If the seller receives less than x percent (at the time this was written 30%) of the sale price in the year of the sale (not including interest), the tax on the profit (gain) from the sale may be paid over the installment period, providing the percentage rule is followed each year.

INSURABLE VALUE - Value of property for insurance purposes.  Based on the value of the property, less indestructible parts (land) for fire insurance.  For insurance purposes the sales price, market value, or replacement value is used.

INSURANCE - A contract under which, for a consideration, one party (the insurer) agrees to indemnify another (the insured) for a possible loss under specific conditions.  May be loss of life, health, property, or property rights.

INSURED MORTGAGE - A mortgage insured against loss to the mortgagee in the event of default and a failure of the mortgaged property to satisfy the balance owning plus costs of foreclosure.  May be insured by FHA, VA or by independent mortgage insurance.

INTEREST RATE - The percentage of an amount of money which is paid for its use for a specified time.  Usually expressed as an annual percentage rate.

INTERIM FINANCING - Temporary financing, usually for construction.

INTERLOCUTORY DECREE - A provisional or temporary decree, pending some contingency before a final decree.  Sometimes the contingency may be only the passage of time.

INTERPLEADER - A procedure to determine which of two parties making the same claim against a third party is the rightful claimant.

IN TESTATE - Without leaving a Will, or leaving an invalid will so that the property of the estate passes by the laws of succession rather than by direction of the deceased.