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Illiquidity -  An asset that is not readily convertible to cash.  

Illusory Contract - An agreement that appears to be binding but in which one party actually is not bound; no enforceable.

Implied Agent - An agent not expressly appointed but implied by actions of the parties.

Implied Contract - An agreement not expressly stated but implied by actions of the parties.

Implied Easement - An easement implied when the grantor conveys property that is landlocked by other property of the grantor or where the grantor created the use, then sold the parcels separately.  

Impound Account - See Escrow Account.

Improved Real Estate - Land upon which buildings and/or other improvements have been made.

Improvements - Any permanent structures to land such as buildings, fences and driveways, as well as landscaping, drainage, utilities, etc.  

In Between Lease - See Sublease.

Incentive Zoning - Zoning that encourages particular improvements such as zoning that allows greater height if a public plaza is included.

Income Approach -  A method of establishing market value by using rental income as a factor for calculating value.  

Income Capitalization Approach - See Income Approach.

Income Property - Property owned or purchased for the purpose of generating income.

Incorporeal Rights - Nonpossessor rights in real estate arising out of ownership, such as the right to rents.  

Incurable Depreciation - Depreciation where the cost of correction is prohibitive.  

Indefeasible - Cannot be voided. 

Indemnify - To secure against a loss of damage that may occur in the future, or to provide compensation for a loss already suffered. 

Indemnity Clause - See Hold-Harmless Clause. 

Indenture - A deed between two parties conveying an interest in real property where in both parties assume obligations.

Index - 1) Measurement used by lenders in a market to determine changes in an accrual rate.  This can be based on a published, independent measure of current interest rates, such as a Treasury Bill. An index must be readily verifiable by the borrower and beyond the control of the lender.  It provides a guideline that should accurately reflect the current cost of lending money. 2) A measure of prevailing market interest rates.  The index is used with the margin to determine a new interest rate at the time of adjustment .  If the index increases, the interest rate increases unless an interest rate cap is reached.  Often, these interest rates are the rates for U.S. Treasury securities.  Treasury securities have become popular as indexes because they are easy to monitor and reflect economic conditions accurately.  

Index Lease - A lease tied to an index.  

Index Method - A method of determining cost of replacement by taking the actual costs when built and applying the increases in the construction cost index since that date. 

Indirect Costs - Construction costs that do not involve either site preparation or building erection (such as permits, surveys, payroll expenses, etc.).

Industrial District - A controlled park-like development designed to accommodate specific types of industry, providing public utilities, streets, railroad sidings, water and sewage facilities.

Industrial Park - See Industrial District.

Informal Description - A description of property that is not a legal descriptions, such as by street address or name of owner.

Ingress - The right to enter property from a public way, generally used in reference to a property owner's access right.

Initial Interest Rate -  The beginning interest rate at the start of an adjustable-rate mortgage (ARM).  It may be lower than the fully indexed rate or going market rate and it will remain constant until it is adjusted up or down on the adjustment date.  

Injunction - A court action to cease and desist from a course of action.  

Inspection - The service performed by an inspector that is hired to scrutinize a home for any potential defects and deficiencies.  May also be done in order to check for hazardous substances such as radon, asbestos, termites or lead contamination.

Installment Loan - A loan that requires periodic payments until both principal and interest are completely paid, such as a car loan. 

Installment Sales Contract - A purchase agreement where the sales price is paid in specific and timely installments and the title is not transferred until the final payment.

Institutional Lender - A financial institution that invests its own funds or funds it is managing in real estate.  For example, mutual savings banks, life insurance companies, commercial banks, pension and trust funds, and savings and loan associations.

Insurable Title -  Title to real property that a title insurance company will insure.  The company issues a title insurance policy as evidence of its insurance.  

Insurance - A contract for indemnification against loss.

Insurance Binder - See Binder.

Insured Loan -  A loan insured by the Federal Housing Administration (FHA) or a private mortgage guaranty insurance company.  

Intangible Property - Property that does not have value in and of itself.

Interest -  1) A charge for borrowing money,  It is usually expressed on an annual rate, or as a percentage, of the money still owed. For example, the interest rate might be 10%%.  If a person borrowed $10,000 and agrees to pay it in full at the end of one year, the interest will be $1,000.  2) A right, share or title in property.  3) A general term meaning partial or total right to a property.  an interest in real estate might be a right, such as an easement (see Easement), a lease or partial or full ownership.  

Interest Only Note - A promissory note that require that only the interest be paid during the term of the note and the payment of the principal amount at the end of the term.

Interest Rate -  The percentage of an amount of money which is paid for its use for a specified time; usually expressed as an annual percentage.  

Interest Rate Cap - See Cap.

Interim Loan - A short term loan. 

Intermediate-term Mortgage - A first mortgage with a term of less than 30 years.

Internal Rate of Return - A method of measuring returns on investment that considers tax consequences.  

Interpleader Action - An action requested by a party to determine rights when two or more people claim to have an interest in property, such as an action brought by a broker where buyer and seller each demands the broker turn over trust funds to him or her.  

Intrinsic Value - The actual, true, or inherent value of something that is not based on temporary economic swings.

Inverse Condemnation - An action by an owner to force a government unit to take property when by its action the government has wrongfully restricted use.

Investor -  In mortgage lending, the holder of a mortgage, or a permanent lender for whom the mortgage banker services the loan.  

Involuntary Lien - A lien imposed without the consent of the landowner.  

Irrevocable - Unchangeable.