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Real estate glossary


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Term Definition
IMDEMNITYInsurance against possible loss or damage. A title insurance policy is a contract of indemnity.
 
IMPOUNDSA trust type of account established by lenders for the accumulation of borrower's funds to meet periodic payments of taxes, mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security.
 
IMPROVED LANDAny parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.
 
IMPROVEMENT RATIOThe comparative value of an improved piece of land to its natural, unaltered state.
 
IMPROVEMENTSAny item added to vacant land with the intent of increasing its value or usability.
 
INCOME APPROACHThe process of estimating the value of property by considering the present value of a stream of income generated by the property.
 
INCOME PROPERTYA piece of property whose highest and best use is the generation of income through rents or other sources.
 
INDEPENDANT APPRAISALAn estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.
 
INSPECTIONThe examination of a piece of property, its buildings or other amenities.
 
INSURABLE TITLEThe title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.
 
INTEREST RATEA percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.
 
INVESTMENT PROPERTYAny piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.
 


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