Your Online Legal Resource Center for Property Management

PACKAGE MORTGAGE - A lien on personal property, as well as real property.

PANEL - A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.

PANELING STRIPS - Made of wood or wood material applied as a finish to a wall.

PAPAER - Refers to any negotiable instrument taken as part payment for real property, such as a land contract, deed of trust, mortgage, etc.

PAR - Usual, ordinary; the amount stated on the face of an instrument, such as a note or mortgage.

PARCEL - An officially described parcel of land.

PARITY CLAUSE - Enables a mortgage or trust deed to cover several notes with no order of preference.

PARKING STRIP - The strip of grass between the sidewalk and the street in front of a house.

PAROL EVIDENCE - Admissible oral evidence when the content of a contract is unclear.

PARTIALLY DISCLOSED PRINCIPAL - When a third party acts on behalf of a second party, without telling the first party who the second party is, even though they may discern another pary is involved.

PARTIAL RELEASE CLAUSE - Used by subdividers to release lots individually from an overall mortgage, upon their sale.

PARTICIPATION - In exchange for making loan, a percentage of the profit and interest in land given a lender by a developer.

PARTITION - Any kind of structure dividing one room or space from another. Also an interior wall.

PARTITIONING - Dividing Real Property into two or more parcels.

PART PERFORMANCE - Less than full performance under a contract, which is acceptable to the parties involved.

PARTY WALL - A wall owner jointly or in common with other owners.

PARTNERSHIP - There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an investor in the property).

PASSIVE INVESTOR - An investor who contributes money not time to a real estate project.

PASSIVE LOSS - A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.

PASSIVE SOLAR SYSTEM - A system that supplies solar heat without the use of electric fans or pumps.

PATENT - The original method of conveyance of title from the government to private owners.

PATENT DEFECT - A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.

PATIO - An interior courtyard or a paved backyard area.

PAYMENT BOND - A bond purchased by a general contractor stating that payments to subcontractors and for materials will be made in full and no mechanic's liens will be filed.

PAYOFF - The amount owed on an existing loan or lien which will be paid off on a closing.

PAYMENT CAP - A legal limit on the amount a monthly payment can increase on an adjustable rate mortgage.

PERCOLATION - Perk Test. Required prior to construction of a septic tank to determine the soil's ability to absorb water.

PERCOLATION TEST - A test used to determine the ability of soil to accommodate a septic system.

PER- DIEM INTEREST - Interest charged or accrued daily.

PERFECTING TITLE - Clearing claims or defects.

PERFORMANCE BOND - A builder's bond insuring the project will be finished.

PERIODIC TENANCY - A lease that runs from period to period, year to year, or month to month, until notice of cancellation by either party.

PERMANENT MORTGAGE - A mortgage of 10 years or longer.

PERPETUITY - In reference to real estate, 21 years after the death of a specified person.

PERSONAL PROPERTY - Property other than real property.

PIGGYBACK LOAN - A single mortgage with two or more lenders involved, loaning portions of the total amount.

PERENNIAL - Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.

PERGOLA - An arbor with an open roof of rafters supported by posts or columns.;

PERSONAL PROPERTY - Any moveable property in a house .such as furniture or appliances.

PEST-CONTROL INSPECTION - A common pest-control inspection is a termite inspection, which is required in some states, such as California.

PIER - A rectangular masonry support column.

PITI (Principal, Interest, Taxes, Insurance) - When a buyer applies for a loan, the lender will calculate the principal, interest, taxes & insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.

PLANNED COMMUNITIES - The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.

PLANNED UNIT DEVELOPMENT - Residents own the home and the land, and share the use and financial responsibility for common areas.

PLANNING COMMISSION - The agency of a local or county government which recommends approval or disapproval of proposed building projects in their jurisdiction.

PLANNING COMMISION PLANS AND SPECS - Written and drawn instructions of a planned building or development project showing electrical, mechanical and construction diagrams and detailing finishes, colors, materials and workmanship.

PLASTER - A labor-intensive and more costly wall finish.

PLAT MAP - A map of a subdivision, showing single lots and street layouts.

POCKET DOOR - A sliding door that retreats into the wall when opened.

PLEDGE - Placing on deposit, a security for a debt such as a sum of money equal to a mortgage deposited with the lender.

PLOT - Area designated for an improvement.

PLOT PLAN - A map showing where improvements are to be placed on a parcel of land.

PLOTTAGE INCREMENT - Joining small parcels together to form a large parcel for the purpose of increasing value.

P.M.I - Private Mortgage Insurance. Covers part of the first mortgage on 90-100% loans, enabling the lender to loan a greater percentage of the sales price; paid for by borrower.

POCKET LISTING - A listing withheld from other sales people so that the listing agent or broker has the first opportunity to sell the property; discouraged by most brokers.

POINT FEES - Charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.

POINTS - See Discount Points

POINT OF BEGINNING - P.O.B. The beginning and ending of a metes and bounds description.

PORCH - The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.

PORTE COCHERE - A porch-like roof extending over a driveway.

PORTFOLIO LENDER - A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.

PORTICO - A porch supported by a row of columns.

POSSESSION -When a buyer signs the papers and receives the keys to the house, they officially take possession.

POSSIBILITY OF REVERTER - A condition in a contract or deed which states that if property is not used according to the terms specified, title will return to the original owner or heirs.

POTABLE - Water fit to drink.

POWER OF ATTORNEY - A document that authorizes an individual to act on behalf of someone else.

POWER OF SALE - A foreclosure which may take place without court action, as granted under a deed of trust or mortgage.

PRE-APPROVAL LETTER - A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.

PRE-CLOSING - The gathering of all documents necessary to final closing of a real estate transaction.

PRELIMINARY COSTS - Expenses which occur prior to actual building, such as feasibility studies, construction loan charges, and legal counsel.

PRELIMINARY TITLE REPORT - A report which may be requested by the lender or borrower prior to closing which discloses defects of record, as well as other pertinent information; also states whether or not title insurance will be issued by the company making the report.

PREPAID EXPENSES - The costs for taxes, insurance and assessments paid before the due date.

PREPAID INTEREST - Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.

PREPAYMENT PENALTY- Lenders can impose a penalty on a borrower who pays a loan off before its expected end date

PRE-QUALIFICATION - Many lenders will pre-qualify a borrower hunting for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

PRESALE/PRE-SOLD HOME - Homes that are sold before they are built.

PRESCRITIVE EASEMENT - An easement granted by law after land has been openly and continuously used and it can be assumed a prior easement had been given, though not recorded.

PRESENTATION - Soliciting a listing from a seller by presenting him or her with information about a broker's services and performance.

PRESSURE RELIEF VALVE - A safety vent that relieves excess pressure in a water heater.

PRICE RANGE - The range in which a buyer is willing to pay for a home.

PRIMER - The initial coat of paint that is applied before the final topcoat.

PRIME RATE - The lowest rate charged by banks of commercial lenders on short-term loans to their best qualified customers.

PRIME TENANT - A financially sound business tenant who will occupy a large amount of space in a commercial development and whose presence will make the project feasible to a lender.

PRINCIPAL - The amount of money that the borrower owes on a mortgage.

PRINCIPAL BROKER - The broker charged with overall responsibitity of a brokerage firm; a principal broker may have 10 offices each staffed with a broker, referred to as associate brokers.

PRINCIPLE OF CONFORMITY - The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.

PRINCIPLE OF PROGRESSION - An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.

PRINCIPLE OF REGRESSION - An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.

PRIORITY LIEN - A lien established on the records as having first priority over other liens.

PRIVATE MORTGAGE INSURANCE - See P.M.I.

PRIVITY - The relationship between parties in a real estate transaction, such as grantor to grantee.

PRIVACY FENCE - A structure erected between two pieces of property.

PRIVATE MORTGAGE INSURANCE - (PMI) A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.

PROBATE SALE - A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.

PROCESSING - Preparing loan and/or other documents for a closing.

PROCURING CAUSE - The effort that is responsible for causing an event, such as a broker obtaining a sale under an open listing entitles him to a commission.

PRODUCTION HOME - Homes that are mass-produced by one builder in a project.

PROFIT - The gain of money after payment of expenses.

PROGRAMMING - A written summation by an architect of a project's design objectives, constraints and criteria.

PROJECT BUDGET - A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.

PROMISSORY NOTE - See Note.

PROPERTY LINE - The official dividing line between properties.

PROPERTY MANAGEMENT - The enterprise of overseeing or being responsible for income property or a fee; involves renting, maintaining, etc.

PROPERTY REPORT - A disclosure issued by the state when a time-share project is located or sold.

PROPERTY TAX - Property taxes are calculated at about 1.5 percent of the current market value.

PROPERTY TAX DEDUCTION - The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.

PROPERTY VALUE - The value of a piece of property is based on the price a buyer will pay at a certain time.

PROPRIATARY LEASE - Refers to a cooperative apartment lease; owners purchase stock in a corporation which entitles them to lease a unit.

PRO RATE - Division of expenses, such as taxes, between seller and buyer, at the time of sale.

PRORATION AGREED - Agreed upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.

PROSPECT - A person intersted in buying, selling,or leasing property, who has not actually done so.

PUBLIC OFFERING STATEMENT - A disclosure of all facts about a subdivision, as required by state subdivision laws.

PUBLIC RECORDS - A record of all documents filed such as liens, deeds, easements, etc. with the county or other local body which are open to public inspection.

PUFFER - A phony bidder at an auction attempting to raise the price of property for sale.

PUFFING - Buyers compile a list during the final walk-through detailing items to be fixed before closing.

PUNCH LIST - A list of construction flaws arrived at by the purchaser and builder for correction, prior to closing.

PURCHASE AGREEMENT - A document which details the purchase price and conditions of the transaction.

PURCHASE - MONEY MORTGAGE - A mortgage that a borrower obtains to acquire a property.

PURCHASER'S POLICY - See Owner's Policy

PYRAMID - To build an estate by multiple acquisitions of properties utilizing the initial properties for a base for further investment.