Letter I Vocab

Question 1

This is a formal agreement between the client or principal and the listing agent. It does not include any documentation or writing. This type of agency in real estate is established when the principal hires the agent to help him with the transactions and other relevant tasks involved in purchasing a home but no Exclusive Agency agreement has been signed.

Answer 1

Implied Agency

Question 2

This type of contract that is an agreement between two parties that is not explicitly written or spoken, but is understood to exist based on the actions or behaviors of the parties involved. It has a similar legal force as the express contract in which the parties agree verbally, voluntarily, or in writing.

RANDOM “Improvements” OR “Improved assets that fall on, in or on top of the property”.

Answer 2

Implied Contract

Question 3

Due to Statute of Frauds, all real estate contracts must be in _____.

Answer 3

In Writing

Question 4

Defined as Just begun and so NOT fully formed or developed. In real estate this term means during a transaction between two parties, where the tentative terms of an agreement have been discussed, and it’s plausible that the deal will go through, but no formal agreement has yet been signed.

Answer 4

Inchoate

Question 5

How do you calculate Income Ratio?

Answer 5

Monthly housing expenses /
Monthly Gross Income

Question 6

This is a lien created by an act of law and can attached to personal and real property.

Answer 6

Income Tax Lien

Question 7

This is a term that often refers to personal property that is inheritable.

Answer 7

Incorporeal

Question 8

This means that everyone is unable to annul, forfeit or end the estate as long as the owner abides by all legal rights.

Answer 8

Indefeasible In Fee Simple

Question 9

This is an employee that is acting as self employed, this means that the broker can NOT dictate hours.

Answer 9

Independent Contractor

Question 10

This term means that it will always hold some value to someone. There is no universal standard for calculating the intrinsic value of a single home. Financial analysts attempt to determine an asset’s intrinsic value by using fundamental and technical analyses to gauge its actual financial performance.

Answer 10

Inherent Value

Question 11

No reasonable reason to suspect any problems with property. This person is someone who buys property without knowledge of any defects or claims against the seller’s title.

Answer 11

Innocent Purchaser

Question 12

Seller financing is a type of real estate agreement that allows the buyer to pay the seller in ______ Agreements rather than using a traditional mortgage from a bank, credit union or other financial institution.

Answer 12

Installment Agreements

Question 13

This term describes a person’s property that can NOT be seen, touched or held.

Answer 13

Intangible Property

Question 14

This term defines the percentage rate applied to the principal which determines the amount of interest owed to the lender over time and creates the mortgage payment.

Answer 14

Interest Rate

Question 15

This term describes the cost of the money paid to a lender by the buyer for the use of their money.

Answer 15

Interest

Question 16

This term describes a neutral third party who listens to each side of the story during mediation.

Answer 16

Interpleader

Question 17

What is it called when someone owns property and dies without a will?

Answer 17

Intestate

Question 18

This type of lien occurs by force of law, such as a tax or special assessment lien.

Answer 18

Involuntary Lien

Question 19

This term describes the area designated as having insufficient groundwater for safe irrigation.

Answer 19

Irrigation Non-Expansion Area (INA)

Question 20

Internal Revenue Services

Answer 20

IRS