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IMPERFECT MARKET A market in which product differentiation exists, there is a lack of important product information and certain buyers or sellers may influence the market. Commercial real estate is bought and sold in an imperfect market.

IMPLIED CONTRACT Created by actions but not necessarily written or spoken.

IMPLIED WARRANTY One that is not written but exists under the law. Contrasted with "expressed."

IMPROVED LAND Land that has some improvements. Land that has been partially or fully developed for use.

IMPROVED VALUE An appraisal term that encompasses the total value of land and improvements rather than the separate values of each.

IMPROVEMENT RATIO The relative value of improvements to the value of unimproved property.

IMPROVEMENTS Generally, the term refers to buildings, but may include any permanent structure or other development, such as a St, utilities, etc. See also ON-SITE IMPROVEMENTS.

IMPOUND ACCOUNT A fund set aside for future needs.

IMPUTED INTEREST Implied interest. In a mortgage that states an insufficient interest rate, the law will impute the rate is higher, and the principal is less.

INCHOATE Unfinished, begun but not completed. In real estate. this can apply to (dower or curtesy) rights prior to the death of a spouse.

INCOME The money or other benefit coming from the use of Property, skill, or business.

INCOME CAPITALIZATION APPROACH A way to determine the market value of an income producing property by converting it's future income stream into a single capital value.

INCOME MULTIPLIER The relationship of price to income.

INCOME PROPERTY Real estate that generates rental income.

INCOME STREAM A regular flow of money generated by a business or investment.

INCOMPETENT One not legally capable of completing a contract. Includes the mentally ill, minors, and others considered incapable.

INCORPORATE To form a corporation under regulations provided by the Secretary of State.

INCORPOREAL PROPERTY Legal interests in real property that do not entail the right of possession.

INCURABLE DEPRECIATION A defect that cannot be cured or that is not financially practical to cure; a defect in the "bone structure" of a building. Compare curable depreciation.

INDEMNIFY To protect another person against loss or damage. 2. to compensate a party for loss or damage.

INDENTURE A written agreement made between 2 or more persons having different interests.

INDEPENDENT APPRAISAL A value estimate provided by someone who does not participate in the income or value of the property.

INDEPENDENT CONTRACTOR A contractor who is self-employed.

INDEPENDENT FEE APPRAISER One who estimates the value of property, has no interest in the property, and is not associated with a lending association or other investor.

INDEX (1) A statistic that indicates some current economic or financial condition. Indexes are often used to make adjustments in wage rates, rental rates, loan interest rates, and pension benefits set by long-term contracts. (2) To adjust contract terms according to an index.

INDEXED LOAN A long-term loan in which the term, payment interest rate, or principal amount may be adjusted periodically according to a specific index. The index and the manner of adjustment are generally stated in the loan contract.

INDEX LEASE A rental agreement that requires changes in rent based on a published record of cost changes. index.

INDIRECT COSTS Development costs other than direct material or direct labor costs, including administrative and office expenses, financing costs and property taxes.

INDUSTRIAL PARK An area designed and zoned for manufacturing and associated activities.

INDUSTRIAL PROPERTY Property used for industrial purposes, such as factories.

INFLATION A loss in the purchasing power of money; an increase in the general price level. Generally measured by the Consumer Price Index, published by the Bureau of Labor Statistics.

INFORMATION REPORTING Reports Provided to the Internal Revenue Service (IRS), such as commissions earned by real estate sales agents and real estate transactions of home sellers, reported by the broker.

INFRASTRUCTURE The basic public works of a city or subdivision, including roads, bridges, sewer and water systems, drainage systems, and essential public utilities.

INHERITANCE TAX A tax, based on property value, imposed in some states on those who acquire property from a decedent. Compare estate tax.

INITIAL INVESTMENT AMOUNT The amount of cash needed or used to acquire an investment.

INJUNCTION An order issued under the seal of a court to restrain one or more parties to a legal proceeding, from performing an act deemed inequitable to another party or parties in the proceeding.

INNER CITY Generally the older and more urbanized area of a large city surrounding the central business district. The term often refers to densely populated blighted areas characterized by low-income residents and a high proportion of minority racial and ethnic groups.

IN REM Latin "against the thing." A proceeding against the property directly, as distinguished from a proceeding against a person (used in taking land for nonpayment of taxes, etc.)

INSIDE LOT In a subdivision, a lot surrounded on each side by other lots, as opposed to a comer lot, which has road frontage on at least 2 sides.

INSPECTION A physical scrutinizing review of property or of documents.

INSTALLMENT CONTRACT Same as land contract

INSTALLMENTS Parts of the same debt, payable at successive periods as agreed; payments made to reduce a mortgage.

INSTALLMENT SALE When a seller accepts a mortgage for part of the sale, the tax on the gain is paid as the mortgage principal is collected.

INSTALLMENT TO AMORTIZE ONE DOLLAR A mathematically computed factor derived from compound interest functions that offers the level periodic payment required to retire a $1.00 loan within a certain time frame. The periodic installment must exceed the periodic interest rate.

INSTITUTIONAL LENDER Financial intermediaries who invest in loans and other securities on behalf of their depositors or customers; lending and investment activities are regulated by laws to limit risk.

INSTRUMENT A written legal document, created to establish the rights and liabilities of the parties to it.

INSURABLE INTEREST An interest in a person or property that would cause one a loss if that person or property were injured. Must be present to collect from an insurance policy.

INSURABLE TITLE A title that can be insured by a title insurance company.

INSURABLE VALUE The cost of total replacement of destructible portions of a property.

INSURANCE COVERAGE Total amount and type of insurance carried.

INSURANCE (MORTGAGE) A service, generally purchased by a borrower, that will indemnify the lender in case of foreclosure of the loan. Indemnification is generally limited to losses suffered by the lender in the foreclosure process.

INTANGIBLE VALUE Value that cannot be seen or touched. Example: The goodwill of an established business is an intangible value.

INTEREST (1) Cost of the use of money. (2) The type and extent of ownership.

INTEREST RATE The lender's rate of return on borrowed funds.

INTEREST ONLY LOAN A method of loan amortization in which interest is paid periodically over the term of the loan and the entire original loan amount is paid at maturity.

INTERNAL RATE OF RETURN The percentage rate earned on each dollar that remains in an investment each year. The IRR of an investment is the discount rate at which the sum of the present value of future cash flows equals the original investment.

INENTORY When referring to a market of office or industrial

INVESTMENT VALUE The value of real property to a specific investor, based on the individual return requirements of that investor.