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.
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