Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Implied Agency - Any agency relationship that is indicated by the words and/or actions of the agent or principal rather than by written agreement; also called accidental agency. COMMENT: See Implied Agency - for a more detailed description of Implied Agency including how easily it can be accidentially created and the remedies available to the consumer.

Improvements - Valuable additions to the land, such as buildings, fences, roads, etc., which increase the value of the property.

Impound Account - Account held by a lender for payment of taxes, insurance, or other expenses. Sometimes called Escrow Account -

Income Approach to Value - An estimate of value based on the monetary returns that a property can be expected to generate; capitalization. Also see the Cost Approach to Value - and the Market Data Approach to Value - .

Independent Contractor - The term is most important as used to describe the relationship of broker and salesperson, employee or independent contractor. If employee, the broker must withhold income tax and pay social security, provide workmen's compensation, and may be liable for some negligent acts of the salesperson while on the job. All of this is avoided by the broker if salesperson is an independent contractor.

Index (financial) - A number, usually a percentage, upon which future interest rates for adjustable rate mortgages are based.

Inspection Clause - A stipulation in an offer to purchase that makes the sale contingent on the findings of a home inspector.

Installment Sale - A tax term used to describe a sale which is usually accomplished by use of a land contract, contract for deed, agreement of sale, conditional sales contract, or installment contract - .

Insurable Title - A title which a title company will insure.

Insured Mortgage - A mortgage insured against loss to the mortgagee in the event of default and failure of the mortgaged property to satisfy the balance owing plus costs of foreclosure.

Interest - (1) The fee charged for using another's money or credit. It is expressed as a percentage rate over a period of time. (2) The type and extent of ownership in property.

Interest Rate - The periodic charge, expressed as a percentage, for use of credit.

Intermediary - A broker who acts as an Intermediary in a transaction does not represent either party. He may not do anything that would give any party to the transaction an advantage over any other party. Extremely limited in services he can offer to either party. Also know as Facilitator - , Transaction Broker - , Mediator. Caution: This form of agency offers a reduced level of service and should never be considered unless you are very knowledgeable about real estate.

Intestate - Legal designation of a person who has died without leaving a valid will.

Intimidation - As defined in the fair housing laws, it is the illegal act of coercing, intimidating, threatening, or interfering with a person in exercising or enjoying any right granted or protected by federal, state or local fair housing laws.