Real Estate Terms
Partial Interest: Ownership in property that is shared between 2 or more persons
Payment Cap: The maximum payment amount on an adjustable loan even if the interest rate increases.
Payoff: The final payment for paying a loan in full
Penalty: Payment for damages for breaching a contract
Penthouse: The top level of an apartment, condominium or residential or commercial building
Periodic Payment Cap: The limit on the increase in the interest rate on an adjustable loan during any adjustment period
Per Dium: Per day
Perimeter: Boundary lines around real estate
Personal Property: Items which are not permanently attached to real estate
Personal Property Loan: A type of loan whereby personal property is pledged in addition to real estate.
Planned Unit Development (PUD): A zoning designation for a community or development where the common areas are shared by several owners and maintained by a homeowner association
Plat: A blueprint which maps out streets, parcels of land and/or other improvements
Plan Book: A book containing plat maps
Point: An amount equal to one percent of the principal amount of the investment or note. Lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments
Pre-Approval: A process of submitting an application and being approved for a loan subject to certain conditions
Possession: Being in control of real estate
Potential Gross Income: The income derived from rental payments before any deductions are made
Prefabricated House: A house built of man made materials, partially assembled before being delivered to real estate land
Prepaid Interest: Interest paid before it is due
Prepaid Items: Items paid for in advance such as interest, taxes
Prepayment Penalty: A fee charged to a borrower who pays a loan before it is due.
Prime Rate: The interest rate that banks charge other banks for borrowing capital
Principal: The amount owed on a mortgage without interest and other fees
Principal, Interest, Taxes and Insurance (PITI): The monthly payment of a loan that includes principal, interest, taxes and insurance
Private Mortgage Insurance (PMI): Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.
Pro Rate: To divide expenses proportionately between buyer and seller
Proceeds: The balanced paid to a seller at closing after all expenses have been paid
Procuring Cause: The chain in which a cause and effect took place; a real estate agent "procuring" a ready and able person for purchasing a property
Property Tax: A tax levied on real estate and personal property based on the value of the property
Proprietary Lease: A right to occupy a dwelling in a co-operative (Co-Op).
Public Records: A written recording of documents to give evidence
Public Sale: A sale at auction or foreclosure whereby the public is notified and allowed to participate in
Purchase Agreement: A written document in which the purchaser agrees to by certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale
Purchase and Lease Back: The sale of property whereby the seller becomes the tenant after closing
Real Estate Terms beginning with O
Real Estate Terms beginning with Q