impeach To discredit a witness, for example, by showing that the witness is a liar.
implied agreement A contract that is created by the conduct of the contracting parties. For example, if an attorney performs a few legal services for a consenting person, the law implies the existence of an employment contract even if none was ever written or verbalized.
implied covenant of quiet enjoyment An implied obligation of the landlord to maintain reasonably comfortable living conditions for the tenant in the rented premises.
implied warranty of habitability 1. An implied guarantee in a lease that there are no concealed defects in the rented premises existing at the beginning of the lease term. 2. An implied obligation upon a landlord to maintain leased premises in a habitable condition throughout the term of the lease.
impound account An account held by a mortgage lender with which to accumulate sufficient funds to pay all annual property taxes and casualty insurance premiums. The funds are taken from the borrower’s monthly mortgage payment, and accumulated until the property taxes and insurance premiums are due.
income approach In appraisal, an approach to estimate the market value of income property. The net income of a property is estimated and capitalized into an estimate of market value by applying an estimated capitalization rate. Estimates are used to avoid any influence from existing management policies. See capitalization rate and net operating income.
income limits A requirement for eligibility for admission to or continued occupancy in subsidized housing developments. The term is used both in public housing where the local housing authority sets the limits and in housing involving federal subsidies or below-market-interest-rate financing, in which cases the income limits are either set by HUD or the FHA, or are dictated by public housing income limits.
income property A property that produces rent or a tax advantage for its owner. Although farmland may produce rent, the term is usually identified with depreciable property only.
incubator space A small office or industrial space in a project designed for small, new businesses.
incurable depreciation Physical, economic or functional depreciation that would cost more to cure than the correction would add to the market value of the property.
index lease A lease agreement that contains a rent escalation clause tied to some index, such as the Consumer Price Index. The purpose is to keep the rent at or near market rates during the term of the lease.
indict The act by a grand jury of declaring, following an evidentiary hearing, that there is probable cause that a specific person has committed a specific crime and ought to stand trial to determine his or her guilt or innocence. The official declaration of a grand jury is an indictment.
industrial park A planned development for industrial buildings.
industrial property The land and the structures on it that are used in assembling, processing, and manufacturing products, or property used for the extraction of natural resources.
infill development Development of vacant land within urban areas that already are improved with infrastructure and development.
inflated appraisal An appraisal, usually of a residence, that is higher than market value. Unethical appraisers may succumb to client-advocacy appraising, and return inflated opinions of value for their clients to use in obtaining inflated loans. The majority of appraisers in the U.S. are not members of well-regarded professional associations, such as the Society of Real Estate Appraisers or the American Institute of Real Estate Appraisers.
infrastructure Improvements and organizations supporting an area, including transportation, communication, and utility systems. In a broad sense it includes the human skills available in the area to support its technology. Developers are more likely to think of infrastructure as “off-site” improvement costs for sewer trunk lines; storm drain lines; roadways; signal lights and so on.
initial investment The down payment. Sales agents prefer to avoid the term "down payment" in discussions with prospective buyers since they feel it has a negative connotation through use of the word “down.”
injunction A court judgment. The judgment takes the form
of a negative order, for example, not to sell, transfer, or convey any
interest in certain real property. For example, a subcontractor may
be prevented from entering upon land, a lender may be prevented from disbursing
construction funds, or a trustee may be prevented from issuing a trustee's
deed. An injunction may be temporary (to allow time for a hearing),
preliminary (to allow time for a full trial), or permanent (to avoid a
permanent wrong).
A person seeking an injunction may be required to post a surety
bond as a condition of its issuance. Such a bond guarantees the other
person compensation for damages if the injunction turns out to be improper
following a trial. There is no right to trial by jury in a proceeding
for an injunction, which is an action in equity. See judicial actions
and remedies.
in-law units Small apartments added on to existing structures.
inner city The downtown city center area of both commercial and residential uses.
inside lot A lot that fronts on one street, unlike a corner lot that fronts on two streets.
installment contract syn contract for deed and land contract
A sale of real estate where the purchase price is paid in installments
over a period of years. Income taxes are payable by the seller in
the years when principal payments are received, not in the year the sale
in one lump sum. The gross profit ratio determines the taxable portion
of principal payments received. See gross profit ratio.
Institute of Real Estate Management, (IREM) See IREM.
intelligent building syn smart office building, telecommunications enhanced real estate, (TERE) and shared tenant services, (STS) See smart office building.
intentional tort Where the tortfeasor deliberately performs a wrongful act that injures an innocent victim. No intent to inflict harm is necessary to establish liability.
interest The "rent" charged for the use of money. Interest is expressed as a percentage of the amount borrowed. Contract rate is the interest rate agreed on in a note or contract. Effective interest is the contract rate with the cost of other charges such as appraisal fees, factored in. Effective interest is also called the annualized percentage rate, or APR.
interference with an economically advantageous relationship When a tortfeasor knowingly and wrongfully interferes with the promised performance of another person’s contract. The term may also refer to violations of antitrust laws and to other unfair competitive practices.
interim financing The financing during a relatively short period before a permanent loan is obtained. For example, a construction loan is an example of interim financing that will be replaced by a permanent, or takeout loan.
inter-institutional paralysis Deadlock that follows whenever an abundance of governmental agencies have jurisdiction over a development such as an urban waterfront.
interior decorator A broker for merchandise, such as furnishings, which are purchased to fit the needs of the occupant of the building.
interior designer A professional involved with the design of interior spaces, lighting, color, orientation of furnishings and so forth.
interpleader A legal proceeding to resolve conflicting claims (e.g., to funds in an escrow account).
interrogatories A form of discovery used by attorneys, consisting of written questions directed to a party or witness who is expected to reply with written answers under oath.
interstate land sales Sales in one state of raw land that is located in another state. Such interstate sales activity is regulated by federal law regarding full disclosure and a cooling off period during which sales may be rescinded.
in the pipeline Pending. A proposed development that is in the process of approval by a local government. Also, an agency may have several deals "in the pipeline," that is, pending close.
inverse condemnation A legal proceeding in which a landowner contends that some governmental body has, through its action or inaction, caused his real estate to suffer serious damage and loss of value. If the landowner is successful in the inverse condemnation lawsuit, the court will order the governmental entity to pay Just Compensation as in a regular condemnation lawsuit. In inverse condemnation, the landowner is the plaintiff, the government the defendant. Inverse condemnation lawsuits are common when a governmental entity adopts major changes in future land uses through general plan and zoning changes. Not all such changes are compensable. However, a zoning change that denies any reasonable economic use of real property is a "taking" of property that must be compensated. For example, zoning a parcel as open space. If the local government refuses to pay, the landowner must resort to a lawsuit in inverse condemnation.
investment tax credit A direct reduction of tax payable allowed to taxpayers who purchase or rehabilitate specified types of property. For example, at present, a twenty percent tax credit is available for rehabilitation of a certified historic building. Such tax credits are used to implement a desired social policy, such as development of solar energy or new oil sources.
investment value The price a particular investor should pay for a property, given that investor’s unique tax situation and financing opportunities.
invitee One who enters another’s land with the permission (implied or express) of the owner or occupier, for a matter of business benefiting the owner or occupier.
IREM Institute of Real Estate Management An affiliate with the National Association of Realtors.