Real Estate Definitions (I)

Irrevocable

Incapable of being recalled or revoked; unchangeable.

Incorporeal Rights

Nonpossessory rights in real estate, arising out of ownership, such as rents.

Income Approach

One of the three methods in the appraisal process; an analysis in which the estimated gross income from the subject residence is used as a basis for estimating value along with gross rent multipliers derived.

Indorsement

The act of signing one's name on the back of a check or a note, with or without further qualification.

Installment Sales Contract

Commonly called contract of sale or "land contract". Purchase of real estate wherein the purchase price is paid in installments over a long period of time, title is retained by seller, and upon default by buyer (vendee) the payments be forfeited.

Incompetent

One is mentally incompetent, incapable; any person who, though not insane, is, by reason of old age, disease, weakness of mind, or any other cause, unable, unassisted, to properly manage and take care of himself or his property and by reason thereof would be likely to be deceived or imposed upon by artful or designing persons.

Irrigation Districts

Quasi-political districts created under special laws to provide for water services to property owners in the district; an operation governed to a great extend by law.

Interest Rate

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

Interpleader

A court proceeding initiated by the stakeholder of property who claims no proprietary interest in it for the purpose of deciding who among claimants is legally entitled to the property.

Institutional Lenders

A financial intermediary or depository, such as savings and loan association, commercial bank, or life insurance company, which pools money of its depositors and then invests funds in various ways, including trust deed and mortgage loans.

Indenture

A formal written instrument made between two or more persons in different interests, such as a lease.

Involuntary Lien

A lien imposed against property without consent of an owner; example; taxes, special assessments, federal income tax liens, etc.

Interest Extra Loan

A loan in which a fixed amount of principal is repaid in installments along with interest accrued each period on the amount of the then outstanding principal only.

Installment Note

A note which provides that payments of a certain sum or amount be paid on the dates specified in the instrument.

Independent Contractor

A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another.

Intestate

A person who dies have made no will, or one which is defective in form, in which case his estate descends to his heirs at law or next of kin.

Interest

A portion, share or right in something. Partial, not complete ownership. The charge in dollars for the use of money for a period of time. In a sense, the "rent" paid for the use of money.

Interim Loan

A short-term, temporary loan used until permanent financing is available, e.g., a construction loan.

Interest Only Loan

A straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in lump sum at maturity.

Impounds

A trust-type account established by lenders for the accumulation of funds to meet taxes, and/or future insurance policy premiums required to protect their security. Impounds are usually collected with the note payment.

Injunction

A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding.

Instrument

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

Increment

An increase. Most frequently used to refer to the increase of value of land that accompanies population growth and increasing wealth in the community. The term unearned increment is used in this connection since values are supposed to have increased without effort on the part of the owner.