A B C D E F G H I J K L M N O [P] Q R S T U V W X Y & Z
Package loan – A real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a new home that includes carpeting, window coverings, and major appliances.
Parol evidence – Oral or verbal evidence.
Parol evidence rule – A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be varied or contradicted by prior or contemporaneous oral or written negotiations.
Participation mortgage – A mortgage loan wherein the lender has a partial equity interest in the property or receives a portion of the income from the property.
Partition – The division of cotenants’ interests in real property when the parties do not all voluntarily agree to terminate the co-ownership; takes place through court procedures.
Partnership – An association of two or more individuals who carry on a continuing business for profit as co-owners. Under the law, a partnership is regarded as a group of individuals rather than as a single entity. A general partnership is a typical form of joint venture in which each general partner shares in the administration, profits, and losses of the operation. A limited partnership is a business arrangement whereby the operation is administered by one or more general partners and funded, by and large, by limited or silent partners, who are by law responsible for losses only to the extent of their investments.
Party wall – A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both properties.
Patent – A grant or franchise of land from the United States government.
Payment cap – The limit on the amount the monthly payment can be increased on an adjustable-rate mortgage when the interest rate is adjusted.
Payoff statement – A statement from the lender that provides the exact amount required to pay an existing loan, effective on the date of closing. See also reduction certificate.
Percentage lease – A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percent age of any gross sales above a certain amount.
Percolation test – A test of the soil to determine if it will absorb and drain water adequately to use a septic system for sewage disposal.
Periodic estate (tenancy) – See estate from period to period.
Personal property – Items, called chattels, that do not fit into the definition of real property; movable objects.
Physical deterioration – A reduction in a property’s value resulting from a decline in physical condition; can be caused by action of the elements or by ordinary wear and tear.
Planned unit development (PUD) – A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision.
Plat – A detailed map that illustrates the geographic boundaries of individual lots.
Plat map – A map of a town, section, or subdivision indicating the location and boundaries of individual properties.
Plottage – The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.
Point of beginning (POB) – In a metes-and-bounds legal description, the starting point of the survey, situated in one corner of the parcel; all metes-and-bounds descriptions must follow the boundaries of the parcel back to the point of beginning.
Police power – The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.
Polychlorinated Biphenyls (PCBs) – Often used as an insulating material in dielectric oil. May be present in electrical equipment. Suspected of causing health problems.
Power of attorney – A written instrument authorizing a person, the attorney-in-fact, to act as agent for another person to the extent indicated in the instrument.
Prepaid items – On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.
Prepayment penalty – A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the lender for interest and other charges that would otherwise be lost.
Preventive maintenance – Regularly scheduled activities such as painting and seasonal servicing of appliances and systems.
Price-fixing – See antitrust laws.
Primary mortgage market – The mortgage market in which loans are originated and consisting of lenders such as commercial banks, savings and loan associations, and mutual savings banks.
Principal
- A sum loaned or employed as a fund or an investment, as distinguished from its income or profits.
- The original amount (as in a loan) of the total due and payable at a certain date.
- A main party to a transaction–the person for whom the agent works.
Principal meridian – The main imaginary line running north and south and crossing a base line at a definite point, used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
Prior appropriation – A concept of water ownership in which the landowner’s right to use available water is based on a government-administered permit system.
Priority – The order of position or time. The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens.
Private mortgage insurance (PMI) – Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure and deficiency.
Probate – A legal process by which a court deter mines who will inherit a decedent’s property and what the estate’s assets are.
Procuring cause – The effort that brings about the desired result. Under an open listing the broker who is the procuring cause of the sale receives the commission.
Progression – An appraisal principle that states that, between dissimilar properties, the value of the lesser-quality property is favorably affected by the presence of the better-quality property.
Promissory note – A financing instrument that states the terms of the underlying obligation, is signed by its maker, and is negotiable (transfer able to a third party).
Property manager – Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting.
Property reports – The mandatory federal and state documents compiled by subdividers and developers to provide potential purchasers with facts about a property, prior to their purchase.
Proprietary lease – A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder’s right as a tenant to an individual apartment.
Prorations – Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing.
Protected class – Any group of people designated as such by the Department of Housing and Urban Development (HUD) in consideration of federal and state civil rights legislation. Currently includes ethnic minorities, women, religious groups, the handicapped, and others.
Puffing – Exaggerated or superlative comments or opinions.
Pur autre vie – “For the life of another.” A life estate pur autre vie is a life estate that is measured by the life of a person other than the grantee.
Purchase-money mortgage (PMM) – A note secured by a mortgage or deed of trust given by a buyer, as borrower, to a seller, as lender, as part of the purchase price of the real estate.
Pyramiding – The process of acquiring additional properties by refinancing properties already owned and investing the loan proceeds in additional properties.
