United Country Guardian Real Estate - Dillon, Beaverhead Madison County Southwest Montana Real Estate for sale

Dictionary / Glossary / Directory
of Real Estate Terminology
Definitions & Commonly Used
Real Estate Terms

Confused & overwhelmed by the overwhelming number of real estate terms and words? Every person working in real estate or planning to buy or sell real estate can benefit by using this dictionary directory glossary of real estate terminology, definitions and commonly used terms.

Real Estate Terminology Definitions & Commonly Used Terms
In Alphabetical Order

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

    Implied Agreement:

  • A contract that is created by the conduct of the contracting parties, without having this agreement or contract formalized in written form which is signed and accepted by the parties.
    • Impound Account:

    • An account held by a mortgage lender, or other contracted provider, with which to accumulate sufficient funds to pay all annual property taxes and casualty insurance premiums on a property which mortgagor has a lein. The funds are taken from the borrower’s monthly mortgage payment, and accumulated until the property taxes and insurance premiums are due.
      • Income Approach:

      • In appraisal, an approach to estimate the market value of income property. The net income of a property is estimated and capitalized into an estimate of market value by applying an estimated capitalization rate to the income generated by the income producing property. Estimates are used to avoid any influence from existing management policies. See capitalization rate and net operating income.
        • Income Property:

        • A property that produces rental or lease income, or a tax advantage for its owner. Although farmland may produce rent, the term is usually identified with depreciable property only.
          • Incurable Depreciation:

          • Physical, economic or functional depreciation that would cost more to cure than the correction would add to the market value of the property.
            • Installment Contract:

              Synonym: Contract for Deed , Land Contract
            • A sale of real estate where the purchase price is paid in installments over a period of years. Income taxes are payable by the seller in the years when principal payments are received, not in the year the sale in one lump sum. The gross profit ratio determines the taxable portion of principal payments received.
              • Interest:

              • The "rent" charged for the use of money lent by commercial or private entities. Interest is expressed as a percentage of the amount borrowed. Contract rate is the interest rate agreed on in a note or contract. Effective interest is the contract rate with the cost of other charges such as appraisal fees, factored in. Effective interest is also called the annualized percentage rate, or APR.
                • Interstate Lands:

                • Sales in one state of raw land that is located in another state. Such interstate sales activity is regulated by federal law regarding full disclosure and a cooling off period during which sales may be rescinded.
                  • Inverse Condemnation:

                  • A legal proceeding in which a landowner contends that some governmental body has, through its action or inaction, caused his real estate to suffer serious damage and loss of value due to actions of that governmental agency. If the landowner is successful in the inverse condemnation lawsuit, the court will order the governmental entity to pay Just Compensation as in a regular condemnation lawsuit. In inverse condemnation, the landowner is the plaintiff, the government the defendant. Inverse condemnation lawsuits are common when a governmental entity adopts major changes in future land uses through general plan and zoning changes. Not all such changes are compensable. However, a zoning change that denies any reasonable economic use of real property is a "taking" of property that must be compensated. For example, zoning a parcel as open space. If the local government refuses to pay, the landowner must resort to a lawsuit in inverse condemnation.
                    • Investment Tax Credit:

                    • A direct reduction of tax payable allowed to taxpayers who purchase or rehabilitate specified types of property, or property within a defined geographic area. Such tax credits are used to implement a desired social policy, such as development of solar energy or new oil sources, as well as economic policy in revitalizing certain areas or expanding commercial / industrial operations.

                    • Real Estate Terminology Definitions & Commonly Used Terms
                      In Alphabetical Order

                      A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

                      While great care has been undertaken to provide accurate explanations and definitions for real estate terms and words in our real estate terms dictionary glossary dirctory, no real estate vocabulary dictionary cannot be completely accurate in all jurisdictions. Any / all definitions are for general purposes only and should not be used for any legal purpose. By use of this dictionary glossary directory of real estate terms, you agree to hold United Country - Guardian Real Estate harmless for any responsibility for any liability, loss or risk that may be claimed or incurred as a consequence of using this information.