H/I Terms

Question 1

habendum

Answer 1

The “to have and to hold” clause in a deed indicating the extent of ownership being transferred (such as fee simple or life estate).

Question 2

IRS Form 8300

Answer 2

Report to IRS on cash transactions over $10,000.

Question 3

involuntary lien

Answer 3

A lien imposed without consent of the landowner, such as a tax lien. A mortgage is a voluntary lien.

Question 4

inverse condemnation

Answer 4

An action by an owner to force a government unit to take property when, by its action, the government has wrongfully restricted use.

Question 5

intestate

Answer 5

Dying without a will. Property passes to the heirs according to state statute governing intestate succession.

Question 6

Interstate Land Sales Act (ILSA)

Answer 6

A federal disclosure act for projects of 25 or more unimproved lots to be sold in interstate commerce.

Question 7

habitability

Answer 7

Reasonably fit for human habitation.

Question 8

interpleader action

Answer 8

An action requested by a party to determine rights when two or more people claim to have an interest in property, such as an action brought by a broker where the buyer and seller each claim rights to a deposit.

Question 9

internal rate of return (IRR)

Answer 9

A method of measuring returns on investment that considers tax consequences.

Question 10

interim loan

Answer 10

A short-term or gap loan. intermediate theory (mortgage) A security theory where title remains with the mortgagor, but automatically transfers to the mortgagee in the event of default.

Question 11

interest rate

Answer 11

The percentage of a loan balance charged by the lender for the use of money.

Question 12

interest only loan

Answer 12

Loan where interest only is paid. When due, loan must be paid off or recast.

Question 13

injunction

Answer 13

A court action to cease and desist from a course of action.

Question 14

ingress

Answer 14

A means of entering.

Question 15

informal description

Answer 15

A description of property that is not a legal description, such as by street address or name of owner.

Question 16

hard-money loan

Answer 16

A cash loan rather than seller financing.

Question 17

head lease

Answer 17

A master lease under which the lessee subleases portions of the premises.

Question 18

index method

Answer 18

A method of determining cost of replacement by taking the actual costs when built and applying the increases in the construction cost index since that date.

Question 19

index lease

Answer 19

A lease tied to an index such as the Consumer Price Index.

Question 20

independent contractor

Answer 20

A contractor employed to complete a task who is not under the supervision or control of the employer.

Question 21

indefeasible

Answer 21

Cannot be voided.

Question 22

incurable depreciation

Answer 22

Depreciation where the cost of correction is prohibitive.

Question 23

increment

Answer 23

Any increase in value.

Question 24

incorporeal property

Answer 24

Intangible property.

Question 25

incompetent

Answer 25

A person who, because of age or mental capacity, lacks the legal ability to enter into valid contracts.

Question 26

inchoate right

Answer 26

A right not yet perfected, such as a mechanic’s right to file a lien or a wife’s dower rights that won’t come into being until the death of her husband.

Question 27

incentive zoning

Answer 27

Encourages particular improvements; for example, zoning that allows greater height if a public plaza is included.

Question 28

imputed interest

Answer 28

An interest rate that will be implied for tax purposes when a note shows a rate of interest less than a statutory minimum (a person will be taxed as if the minimum acceptable rate was received).

Question 29

header

Answer 29

A beam over a window or door.

Question 30

improvement

Answer 30

An addition to property, such as a room or air-conditioning. Unlike repairs, improvements increase the cost basis of the property.

Question 31

impound account

Answer 31

A reserve for taxes and insurance kept by the lender to which the borrower pays, along with regular principal and interest payments; also called an escrow account.

Question 32

implied easement

Answer 32

An easement implied when the grantor conveys property that is landlocked by other property of the grantor or where the grantor created the use, then sold the parcels separately.

Question 33

implied contract

Answer 33

An agreement not expressly stated but implied by actions of the parties.

Question 34

implied agent

Answer 34

An agent not expressly appointed but implied by actions of the parties.

Question 35

illusory contract

Answer 35

An agreement that appears to be binding but in which one party actually is not bound; not enforceable.

Question 36

illiquidity

Answer 36

An asset that is not readily convertible to cash. Real estate is considered to be illiquid.

Question 37

illegal

Answer 37

In violation of an existing law.

Question 38

hereditament

Answer 38

Any item capable of being inherited.

Question 39

hypothecate

Answer 39

To give something as security without giving up possession.

Question 40

homestead

Answer 40

A home on which a declaration of homestead has been filed to protect the home from unsecured creditors up to a statutory amount.

Question 41

homeowners policy

Answer 41

A comprehensive insurance policy covering fire, vandalism, theft, liability, and other hazards.

Question 42

homeowners association (HOA)

Answer 42

A governing association for common interest developments established pursuant to the restrictive covenants of the development.

Question 43

highest and best use

Answer 43

That use which results in the greatest value for a property.

Question 44

holographic will

Answer 44

A handwritten, signed, and dated will. No witnesses are needed.

Question 45

holdover tenant

Answer 45

A tenant retaining possession after expiration of the lease. See tenancy at sufferance.

Question 46

holdover clause

Answer 46

A lease condition that provides for a very high rent should the tenant fail to vacate at the end of the lease, discouraging a holdover situation.

Question 47

Hold Harmlessclause

Answer 47

one party agrees to indemnify the other for any loss suffered because of the contract or lease.

Question 48

hip roof

Answer 48

A roof where all sides slope to the eaves.

Question 49

holder in due course

Answer 49

A person who, in the course of commerce, takes a negotiable instrument good on its face for value before the due date, without notice of any defense of the maker.

Question 50

historic structure

Answer 50

Structure listed on National Register of Historic Places or a state registry. There are tax incentives for restoration. as well as penalties for demolition and alteration.