Glossary

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There are 78 names in this directory beginning with the letter P.
Parallels
Imaginary lines running east and west, parallel to the equator. Also called latitude lines.
Parcel
A lot or piece of real estate, especially a specified part of a larger tract.
Partial Performance
When one party to a con_tract has not completely accomplished all of the terms of the agreement, but the other party agrees to accept the incomplete performance and consider the contract discharged.
Partial Satisfaction
The instrument given to the borrower when part of the security prop_erty is released from a blanket mortgage under a partial release clause.
Partition
The division of a property among its co-owners, so that each owns part of it in sev_erally; this may occur by agreement of all the co-owners (voluntary partition), or by court or_der (judicial partition).
Partner, General
A partner who has the au_thority to manage and contract for a general or limited partnership, and who is personally li_able for the partnership's debts.
Partner, Limited
A partner in a limited part_nership who is primarily an investor and does not participate in the management of the busi_ness, and who is not personally liable for the partnership's debts.
Partnership
An association of two or more per_sons to carry on a business for profit. The law generally regards a partnership as a group of individuals, not as an entity separate from its owners. Compare: Corporation.
Partnership Property
All property that part_ners bring into their business at the outset or later acquire for their business.
Partnership, General
A partnership in which each member has a right to manage the busi_ness and share in the profits, as well as respon_sibility for the partnership's debts. All of the partners are general partners.
Partnership, Limited
A partnership made up of one or more general partners and one or more limited partners.
Party Wall
A wall located on the boundary line between two adjoining parcels of land that is used or intended to be used by the owners of both properties.
Patent
The instrument used to convey govern_ment land to a private individual.
Payee
In a promissory note, the party who is entitled to be paid; the creditor or lender. Com_pare: Maker.
Pending Special Assessment
An assessment that has been approved but not yet levied.
Per Annum
Per year; usually refers to an an_nual rate of expense.
Per Diem
Per day; usually refers to the daily rate of an expense, or to a daily stipend paid.
Percolation Test
A test to determine the abil_ity of the ground to absorb or drain water; used to determine whether a site is suitable for con_struction, particularly for installation of a sep_tic tank system.
Personal Property
Any property that is not real property; movable property not affixed to land. Also called chattels or personalty.
Personal Use Property
Property that a tax_payer owns for his or her own use (or family use), as opposed to income property, investment property, dealer property, or property used in a trade or business.
Personalty
see Personal property
Physical Deterioration
Loss in value (depre_ciation) resulting from wear and tear or deferred maintenance.
Physical Life
An estimate of the time a build_ing will remain structurally sound and capable of being used. Compare: Economic Life.
PITI
The shorthand way of stating the most usual elements of a residential mortgage payment, which may consist not only of the Principal and Interest (PI) but the property taxes (T) and hazard insurance (I) as well. In the case where all four elements are part of the payment, the lender escrows the T and I and pays them on behalf of the borrower when they come due. Some loans are written such that the payment to the lender consists only of the P and I in which case the borrower pays the taxes and ins
Plaintiff
The party who brings or starts a civil lawsuit; the one who sues.
Planned Unit Development (PUD)
A devel_opment (usually residential) with small, clus_tered lots designed to leave more open space than traditional subdivisions have.
Planning Commission
A local government agency responsible for preparing the community's master development plan.
Plat
A detailed survey map of a subdivision, recorded in the county where the land is located. Subdivided property is often called platted prop_erty.
Plat Book
A large book containing subdivision plats, kept at the county recorder's office.
Pledge
The transfer of possession of property by a debtor to the creditor as security for re_payment of the debt. Compare: Hypothecate.
Plot Plan
A plan showing lot dimensions and the layout of improvements (such as buildings and landscaping) on a property site.
Plottage
The increment of value that results when two or more lots are combined to pro_duce greater value. Also called the plottage in_crement.
Point
One percent of the principal amount of a loan. See: Discount points.
Point of Beginning (POB)
The starting point in a metes and bounds description; a monument or a point described by reference to a monu_ment.
Points
Discount charges imposed by the lenders to buy down the interest rate of a new mortgage. One(1) point equals 1% of the loan amount. (Example: $100,000 loan; 1 point (1%) = $1,000).
Police Power
The constitutional power of the state government (delegated to local govern_ments) to enact and enforce laws for the pro_tection of the public's health, safety, morals, and general welfare.
Portfolio Loan
A non-conforming loan that is held by the original lender rather than being sold on the secondary market.
Possession
1. The holding and enjoyment of property. 2. Actual physical occupation of real property.
Possessory Interest
An interest in property that includes the right to possess and occupy the property. The term includes all estates (lease_hold as well as freehold), but does not include encumbrances.
Potable Water
Water that is safe to drink.
Power of Attorney
An instrument authoriz_ing one person (the attorney in fact) to act as another's agent, to the extent stated in the in_strument.
Power of Sale Clause
A clause in a mortgage giving the lender the right to foreclose nonjudicially (sell the security property with_out a court action) if the borrower defaults.
Prepayment
Paying off part or all of a loan before payment is due.
Prepayment Penalty
A penalty charged to a borrower who prepays.
Prepayment Privilege
A borrower's right to pay off a loan before it is due, in the absence of a prepayment penalty provision.
Prescription
Acquiring an interest in real prop_erty (usually an easement) by using it openly and without the owner's permission for the pe_riod prescribed by statute.
Prescriptive Easement
Rights to a property acquired by someone claiming continuous use.
Prima Facie
At first sight; on the face of it.
Primary Mortgage Market
The market in which mortgage loans are originated, where lenders make loans to borrowers. Also called the local market. Compare: Secondary Mort_gage Market.
Prime Rate
The interest rate a bank charges its largest and most desirable customers.
Principal
1. One who grants another person (an agent) authority to represent him or her in deal_ings with third parties. 2. One of the parties to a transaction (such as a buyer or seller), as op_posed to those who are involved as agents or employees (such as a broker or escrow agent). 3. In regard to a loan, the amount originally borrowed, as opposed to the interest.
Principal Balance
Outstanding dollar amount owed on a loan exclusive of accrued interest.
Principal Residence Property
Real property that is the owner's home, his or her main dwell_ing. Under the federal income tax laws, a per_son can only have one principal residence at a time.
Principal, Interest, Taxes, Insurance (PITI)
Monthly payments required by an amortizing loan that includes escrow deposits for taxes and insurance in addition to the principal and interest
Private Mortgage Insurance (PMI)
Insurance premium paid by a borrower to protect lenders against losses from loans with loan-to-value ratios higher than 80%, default insurance for lenders.
Private Restrictions
Restrictions on the use of land that are contained in deeds or contracts; as opposed to public restrictions, which are im_posed by zoning laws and other government regulations.
Privity
A legal relationship between people who have simultaneous or successive interests in a property. For example, the dominant and servient tenants in an easement agreement are in priv_ity to one another; so are the seller and the buyer of a property.
Probate
A judicial proceeding in which the va_lidity of a will is established and the executor is authorized to distribute the estate property; or, when there is no valid will, in which an admin_istrator is appointed to distribute the estate to the heirs.
Probate Court
A court that oversees the dis_tribution of property under a will or intestate succession.
Procuring Cause
The real estate agent who is primarily responsible for bringing about a sale; for example, by negotiating the agreement be_tween the buyer and seller. The agent who pro_duces a buyer ready, willing, and able to buy the property on the seller's terms.
Profit
A nonpossessory interest; the right to en_ter another person's land and take something (such as timber or minerals) away from it.
Progression, Principle of
An appraisal prin_ciple which holds that a property of lesser value tends to be worth more when it is located in an area with properties of greater value than it would be if located elsewhere. The opposite is the principle of regression.
Promisee
Someone who has been promised something; someone who is supposed to receive the benefit of a contractual promise.
Promisor
Someone who has made a contrac_tual promise to another.
Promissory Note
Promise to pay a specified sum to a specified person under specified terms.
Property
1. The rights of ownership in a thing, such as the right to use, possess, transfer, or encumber it. 2. Something that is owned.
Property Management Agreement
An employment contract between an income producing property owner and a real estate broker, appointing the broker as the owner's general agent for the purpose of leasing and managing the property.
Property Manager
A person hired by a prop_erty owner to administer, market, and maintain property, especially rental property.
Property Used in a Trade or Business
Prop_erty such as business sites and factories that are used in a taxpayer's trade or business.
Proprietary Lease
In a cooperative, the right of a shareholder/resident to occupy a particu_lar unit.
Proprietorship, Individual or Sole
A busi_ness owned and operated by one person.
Proration
The process of dividing or allocat_ing something (especially a sum of money or an expense) proportionately, according to time, interest, or benefit.
Public Record
The official collection of legal documents that individuals have filed with the county recorder in order to make the informa_tion contained in them public.
Puffing
Superlative statements about the qual_ity of a property that should not be considered assertions of fact.
Purchase Agreement
A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price. Also called a purchase and sale agreement, de_posit receipt, earnest money agreement, sales contract, or contract of sale.
Purchase Money Mortgage
A mortgage received by an owner of real property from a new buyer. Similar to a Contract For Deed, except that the Deed is transferred and the owner is selling the property, and taking back a mortgage rather than having the buyer go down to the bank and get a new mortgage to pay off the seller.
Purchase Subject to Mortgage
A purchase in which a buyer agrees to make the monthly mortgage payments on an existing mortgage and the original borrower remains liable if the purchaser fails to make the payments as agreed.
Purchaser's Assignment of Contract and Deed
The instrument used to assign the vendee's equitable interest in a contract to an_other. Compare: Assignment of Contract and Deed.