Vocabulary I

Question 1

Illegality

Answer 1

Contract defense which, if established, results in a void contract.

Question 2

Implied contract

Answer 2

Contract that contains terms or conditions that have not been expressly stated or written.

Question 3

Increase and diminishing returns

Answer 3

Economic principles influencing the amount of value , which state that after a certain point, money spent of improvements will no longer increase the value of a property

Question 4

Intellectual property

Answer 4

Intangible personal property that is often organized and protect through copyright and patent laws

Question 5

Interest

Answer 5

The cost to borrow money

Question 6

Interest only mortgage

Answer 6

Also known as a straight mortgage or a long term loan, in which the borrower only pays the interest during the life and loan

Question 7

Intermediation

Answer 7

Process by which a financial institutions invest deposited funds

Question 8

Inverse condemnation

Answer 8

Situation where the government regulations is so perversive that it eliminates any economically viable use of ones property

Question 9

Investment permanence

Answer 9

Economic characteristic of a real property that describes the permanence of an investment in infrastructure improvements

Question 10

Involuntary lien

Answer 10

Lien created by operation of law, such as tax or mechanical lien.