H/I Terms Flashcards
habendum
The “to have and to hold” clause in a deed indicating the extent of ownership being transferred (such as fee simple or life estate).
IRS Form 8300
Report to IRS on cash transactions over $10,000.
involuntary lien
A lien imposed without consent of the landowner, such as a tax lien. A mortgage is a voluntary lien.
inverse condemnation
An action by an owner to force a government unit to take property when, by its action, the government has wrongfully restricted use.
intestate
Dying without a will. Property passes to the heirs according to state statute governing intestate succession.
Interstate Land Sales Act (ILSA)
A federal disclosure act for projects of 25 or more unimproved lots to be sold in interstate commerce.
habitability
Reasonably fit for human habitation.
interpleader action
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.
internal rate of return (IRR)
A method of measuring returns on investment that considers tax consequences.
interim loan
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.
interest rate
The percentage of a loan balance charged by the lender for the use of money.
interest only loan
Loan where interest only is paid. When due, loan must be paid off or recast.
injunction
A court action to cease and desist from a course of action.
ingress
A means of entering.
informal description
A description of property that is not a legal description, such as by street address or name of owner.
hard-money loan
A cash loan rather than seller financing.
head lease
A master lease under which the lessee subleases portions of the premises.
index method
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.
index lease
A lease tied to an index such as the Consumer Price Index.
independent contractor
A contractor employed to complete a task who is not under the supervision or control of the employer.
indefeasible
Cannot be voided.
incurable depreciation
Depreciation where the cost of correction is prohibitive.
increment
Any increase in value.
incorporeal property
Intangible property.
incompetent
A person who, because of age or mental capacity, lacks the legal ability to enter into valid contracts.
inchoate right
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.
incentive zoning
Encourages particular improvements; for example, zoning that allows greater height if a public plaza is included.
imputed interest
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).
header
A beam over a window or door.
improvement
An addition to property, such as a room or air-conditioning. Unlike repairs, improvements increase the cost basis of the property.
impound account
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.
implied easement
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.
implied contract
An agreement not expressly stated but implied by actions of the parties.
implied agent
An agent not expressly appointed but implied by actions of the parties.
illusory contract
An agreement that appears to be binding but in which one party actually is not bound; not enforceable.
illiquidity
An asset that is not readily convertible to cash. Real estate is considered to be illiquid.
illegal
In violation of an existing law.
hereditament
Any item capable of being inherited.
hypothecate
To give something as security without giving up possession.
homestead
A home on which a declaration of homestead has been filed to protect the home from unsecured creditors up to a statutory amount.
homeowners policy
A comprehensive insurance policy covering fire, vandalism, theft, liability, and other hazards.
homeowners association (HOA)
A governing association for common interest developments established pursuant to the restrictive covenants of the development.
highest and best use
That use which results in the greatest value for a property.
holographic will
A handwritten, signed, and dated will. No witnesses are needed.
holdover tenant
A tenant retaining possession after expiration of the lease. See tenancy at sufferance.
holdover clause
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.
Hold Harmlessclause
one party agrees to indemnify the other for any loss suffered because of the contract or lease.
hip roof
A roof where all sides slope to the eaves.
holder in due course
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.
historic structure
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.
