IMPERATIVE NECESSITY
Circumstances under which an agent has expanded authority in an emergency, including the power to disobey instructions where it is clearly in the interests of the principal and where there is no time to obtain instructions from the principal.

IMPOUNDS
A trust type account established by lenders for the accumulation of borrowers funds to meet periodic payment of taxes, FHA mortgage insurance premiums, and/or future insurance policy premiums, required to protect their security. Impounds are usually collected with the note payment. The combined principal, interest, taxes and insurance payment is commonly termed a PITI payment.

INCOME (CAPITALIZATION) APPROACH
One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process. (1) find net annual income, (2) set an appropriate capitalization rate or "present worth" factor, and (3) capitalize the income dividing the net income by the capitalization rate.

INCOMPETENT
One who 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 self or property and by reason thereof would be likely to be deceived or imposed upon by artful or designing persons.

INCORPOREAL RIGHTS
Nonpossessory rights in real estate, a rising out of ownership, such as rents.

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.

INDEMNITY AGREEMENT
An agreement by the maker of the document to repay the addressee of the agreement up to the limit stated for any loss due to the contingency stated on the agreement.

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

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.

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

INITIAL NOTE RATE
With regard to an adjustable rate mortgage, the note rate upon origination. This rate may differ from the fully indexed note rate.

INITIAL RATE DISCOUNT
As applies to an adjustable rate mortgage, the index value at the time of loan application plus the margin less the initial note rate.

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.

INSTALLMENT NOTE
A note which provides for a series of periodic payments of principal and interest, until amount borrowed is paid in full. This periodic reduction of principal amortizes the loan.

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

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 may be forfeited.

INSTITUTIONAL LENDERS
A financial intermediary or depository, such as a 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.

INSTRUMENT
A written legal document; created to effect the rights of the parties, giving formal expression to a legal act or agreement for the purpose of creating, modifying or terminating a right. Real estate lenders' basic instruments are promissory notes, deeds of trust, mortgages, installment sales contracts, leases, assignments.

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.

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.

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 a lump sum at maturity.

INTEREST RATE
The percentage of a sum of money charged for its use. Rent or charge paid for use of money, expressed as a percentage per month or year of the sum borrowed.

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

INTERMEDIATION
The process of pooling and supplying funds for investment by financial institutions called intermediaries. The process is dependent on individual savers placing their funds with these institutions and foregoing opportunities to directly invest in the investments selected.

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.

INTERVAL OWNERSHIP
A form of timeshare ownership. (See Timeshare Ownership.)

INTESTATE
A person who dies having made no will, or one which is defective in form, is said to have died intestate, in which case the estate descends to the heirs at law or next of kin.

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

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; an operation governed to a great extent by law.