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Real Property Glossary -I-
RETURN TO GLOSSARY PLANET
Impact feesFees collected from developers of new homes to pay for schools, parks and other facilities.
Implied warranty of habitability
Legal doctrine stating that all new homes are assumed to be fit for human
habitation and must meet all building codes.
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( if applicable).
Income property
Property that is not occupied by the owner but is used to generate income.
A defect in a property that cannot be fixed or would cost too much to repair relative to the value of the property.
Independent contractor
A person hired to do a particular job, subject to the direction of a
supervisor. An independent contractor pays for his or her own expenses and
taxes and receives no employee benefits.
Financial tables used by lenders to calculate interest rates on adjustable mortgages. Commonly used indexes are the Prime Rate, the LIBOR and Treasury bills.
Infill housing
Home construction in established areas.
Air from the environment that penetrates a building.
Infrastructure
The utilities, roads, schools, parks and communications systems in a community.
Initial interest rate
The original interest rate on an adjustable rate mortgage. This rate may be
subject to various adjustment at points throughout the mortgage.
A specific limit defined by some adjustable rate loans (ARMs) for the maximum amount the interest rate may increase at the expiration of the initial interest rate.
Initial rate duration
Most adjustable rate loans (ARMs) offer an initial interest rate below the
current market rate. This initial or "teaser" rate expires after a period called
the initial rate duration, which may last months or years.
The mechanism inside a toilet tank that automatically fills the tank with water when the tank empties. The inlet valve is connected to the shutoff valve under the toilet.
Inspection fee
The fee paid to a licensed property inspector in order to determine the present
physical condition of the property.
A licensed property inspectors; written report of the property's condition.
Installment contract
A purchase agreement where the buyers do not receive the title to the property
until all installments are paid.
A real estate transaction in which the sales price is paid in installments.
Instrument
A written legal document.
Materials that slow heat loss such as cellulose, glass fiber, rock wool, polystyrene, urethane foam, and vermiculite.
Insurable title
Title to property that a company agrees to insure against defects and disputes.
Insurance policies guarantee compensation for specific losses and can be purchase in various forms including hazard, private mortgage, and earthquake.
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.
The total amount paid to the lender for the use of money during the time the money is borrowed.
Interest rate
The fee, expressed as a percentage, charged for a loan.
For buyers with limited cash reserves 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 cap
The maximum interest rate charge allowed on the monthly payment of an adjustable
rate mortgage during an adjustment period.
The highest interest rate a lender can charge for an adjustable rate mortgage.
Interest only loan
The borrower 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.
Short-term financing used by sellers to bridge the gap between the sale of one house and the purchase of another (also known as bridge or swing loans). A construction loan is also a form of interim financing.
Investment property
Real estate that generates income, such as an apartment building or a rental
home.
