Illusory Contract

An agreement that gives the appearance of a contract, but in fact is not a contract because it lacks one of the essential elements.

Implied

Not expressed by words, but presumed from facts, acts, or circumstances.

Impound Account

A trust account established by the lender to pay property taxes and hazard insurance.

Income Approach

An appraisal technique used on income producing properties. Also known as the capitalization approach.

Income Tax

The cost to remodel vacant property may be deducted from the income tax.

Incompetent

Someone incapable of managing his or her own affairs by reason of age, disease, weakness of mind, or any other cause.

Increment

Any increase.1. A term frequently used to refer to the increased value of land because of population growth and increased wealth in the community.2. Unearned increment is used in this connection since the values increased without effort on the part of the owner.

Indebtedness

A debt or obligation.

Indemnification

Compensation to a person who has already sustained a loss. For example, insurance payment for a loss under policy.

Indirect Lighting

A method of illumination in which the light is reflected from the ceiling or other object outside the fixture.

Inflation

This is not an easy condition to eliminate.

Inflationary Hedge

Real estate is considered to be the best bet against inflation.

Ingress

The act of or avenue for entering property.

Inherit
To take property through a deceased's estate.

Injunction

An order issued by a court to restrain one or more parties to a suit or proceeding from performing an act deemed inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding.

Injunction

A court order prohibiting certain acts, or ordering specific acts.

Installment

A partial payment of a debt due in a series of payments.

Installment Note

A note that provides that payments of a certain sum or amount be paid in more than one payment on the dates specified in the instrument

Installment Sales Contract

Also known as an agreement of sale or a land contract.

Installment-Sale Method

A method of reporting capital gains by installments for successive tax years to minimize the impact of capital gains tax in the year of the sale.

Institutional Lender

Lenders who make a substantial number of real estate loans, such as banks, savings and loan associations, and insurance companies.

Instrument

A written legal document created to affect the rights of the parties.

Interest

The charge or cost for the use of money.

Interest Rate

The percentage of a sum of money charged for its use.

Interest Rate Cap

The majority of all the mortgages do contain an intrest rate cap.

Interpleader

A court proceeding initiated by a stakeholder, such as a broker or escrow agent. This decides the ownership or disposition of trust funds.

Intestate

A person who dies without a will.

Interest Deduction

The amount of a home equity loan that qualifies for an interest deduction can not exceed $100,000.

Investor

A person who holds property primarily for future appreciation in value for federal and state income tax purposes.

Invitee

A person who enters another's land because of an express or implied social invitation, such as a social guest. The term also covers certain government workers who enter someone's land, such as police officers and firefighters. Classification of such status was revoked by a recent court case.

Involuntary Conversion

The loss of real property due to destruction, seizure, condemnation, foreclosure sale, or tax sale.

Involuntary Lien

Any lien imposed on property without the consent of the owner. IRREVOCABLE Incapable of being recalled or revoked; unchangeable.

Irrigation Districts

Quasi-political districts created under special laws to provide for water services to property-owners in the district.

Real Estate Dictionary Terms - I