Terms I Flashcards
The concept that property is an illiquid asset because it cannot easily be sold or exchanged for cash.
Illiquidity
Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship.
Implied Agency
A legal substitute for a contract. An implied contract is an agreement created by actions of the parties involved, but it is not written or spoken. This is a contract assumed to have been drawn.
Implied Contract
A proceeding against the reality directly; as distinguished from a proceeding against a person. (Used in taking land from nonpayment of taxes, etc.)
In Rem
An appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate.
Value = Income / Rate
Income Approach
A person that provides service to another under terms specified in a contract or within a verbal agreement. An independent contractor is not an employee.
Independent Contractor
Costs that support a construction project, such as legal or architectural fees.
Indirect Cost
A lease tied to an index such as the Consumer Price Index.
Index Lease
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
Inflation
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Informed Consent
Basic physical and organizational structures needed for the operation of a society or city.
Infrastructure
The value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting cost of non insurable items (ex. land value) from market value.
Insured Value
A fee paid by the borrower of a loan as a form of compensation for the use of money.
Interest
Reductions of the income subject to tax, for various items, especially expenses incurred to produce income.
Interest and Tax Deductibility
The specific value of an investment to a particular investor or class of investors based on individual investment requirements; distinguished from market value, which is impersonal and detached.
Investment Value
