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Real Estate Glossary

Letter P

Package MortgageA method of financing in which the purchase of the land also finances the purchase of certain personal property items.

Package PolicyTwo or more lines of coverage combined into one insurance policy. A homeowners policy is a true package policy because it combines property insurance with liability insurance.

Package Trust DeedSee: Package Mortgage.

PadThe foundation of slab construction. Specifically used to describe where a mobile home is placed or a condominium is built, but can be generally used for any slab or land under a building.

Paired Data AnalysisSee: Paired Sale.

Paired SaleAn appraisal procedure comparing only 2 properties, usually with only one major difference.

PaneThe glass portion of a door or window.

Panel(1) A section, raised, lowered, or level, of a wall, ceiling, fence, etc., self contained, and usually in a border or frame. (2) Sheets of gypsum, plywood, or other materials in similar form.

Panel HeatingSpace heating by electric coils, hot air, hot water, or steam pipes, which are built into walls, ceilings, or floor panels. Also called radiant heating.

Panel WallSee: Curtain Wall.

PaperA mortgage, deed of trust, or land contract, which is given instead of cash. A seller would take back "paper" if he or she received a mortgage, deed of trust, or land contract as part of the purchase price.

Par(1) Average, equal, normal, etc. (2) Face value, as in negotiable instruments.

ParapetA short wall along the edge of a platform, such as a roof, terrace, etc., to protect the edge and divert rainwater.

ParcelA general term meaning any part or portion of land.

Parcel 2 EasementA colloquial term used to describe an appurtenant easement of the dominant tenement, because the easement is described in the legal description. Usually, the property is described as parcel 1 and the easement as parcel 2.

Parcel MapA map allowed in some states as a substitute for a subdivision map for 1 to 4 parcels (lots) with no common area. The procedure is much simpler and less costly than creating a subdivision map.

PargingCoating cement on a masonry wall, usually for water proofing.

ParishA political division in Louisiana, comparable to a county.

ParkingThe acquisition of property by an exchange accommodation titleholder (EAT) to meet the requirements of a reverse exchange or build to suit exchange under IRS Code Section 1031 and Treasury Revenue Ruling 2003-37.

Parking RatioThe ratio of parking spaces to building (usually rentable) area. Examples: Office use, 4 parking spaces per 1000 square feet; apartment use, 2 parking spaces per unit.

Parkway(1) A highway through a park, usually restricting vehicles over a certain weight. (2) A freeway or expressway.

ParolVerbal. Usually refers to evidence in a court of law. The "Parol Evidence Rule" governs when such evidence is admissible.

Parol EvidenceEvidence concerning negotiations or oral agreements not included in a written contract that alter or contradict the terms of the written contract.

Parol Evidence RuleA law that states that no prior or contemporary oral or extraneously written agreement can change the terms of a contract.

Parquet FloorPatterned, hardwood flooring, especially parquetry (a geometric design).

Partial ClaimA filing by a lender with the U.S. Department of Housing and Urban Development requesting a one time, interest free, payment from the FHA insurance fund to bring a mortgage in default current. If approved, the payment from FHA to the lender is secured by a lien on the property (second mortgage).

Partial EvictionA case in which the landlord's negligence deprives the tenant of the use of all or part of the premises.

Partial ReconveyanceSee: Partial Release.

Partial ReleaseA release of a portion of property covered by a mortgage. A subdivider will obtain a partial release as each lot is sold, upon payment of an agreed upon amount. In areas where the subdivider is not usually the builder, it may be necessary to sell groups of lots to obtain a partial release. In areas where deeds of trust are used instead of mortgages, a "partial reconveyance" is the document used.

Partial TakingThe taking of part of an owner's property under the laws of eminent domain. Compensation must be based on damages or benefits to the remaining property, as well as the part taken.

ParticipationLender involvement in property whereby the lender receives a portion of profits or income from the property as well as interest. Usually occurs when money is tight or the risk is unusually high.

Participation CertificatesMortgage securities, rather than mortgages. The advantage of the certificate is that it is readily marketable or pledgeable.

Participation FinancingA mortgage in which the lender participates in the income of the mortgaged venture beyond a fixed return, or receives a yield on the loan in addition to the straight interest rate.

Participation LoanSee: Participation.

Participation PlanA loan when the buyer and another investor (or seller, lender, etc.) enter into a partnership, with the buyer paying an equity share in lieu of interest. Also called: Shared Equity Plan or Mortgage.

PartitionThe 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.

PartnershipAn 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 by which the operation is administered by one or more general partners and funded by limited or silent partners, who are by law responsible for losses only to the extent of their investment.

Partnership PropertyThe property partners bring into a business at the outset or later acquire for the business; property owned as tenants in partnership. See: Tenancy in Partnership.

Part PerformanceThe legal doctrine that allows a court to enforce an oral agreement that should have been in writing when the promisee has taken irrevocable steps to perform his contractual obligation and failure to enforce the contract would result in an unjust benefit for the promisor.

Party WallA wall erected on a property boundary as a common support to structures on both sides, which are under different ownerships.

Party Wall EasementA wall that is located on or at a boundary line between two adjoining parcels for the use of the owners of both properties.

Par Value(1) Concerning stock. The face value of a share of stock. (2) With reference to mortgages or trust deeds, the value of the mortgage based on the balance owing, without discount.

Passive IncomeDefined in Section 469 as earnings derived from any trade or business or income producing activity in which the taxpayer does not materially participate.

Pass Through(1) A method of escalation found in modern leases whereby the tenant directly pays increases in operating expenses of the property. (2) A method of paying interest directly to certificate holders of a mortgage pool.

Pass Through CertificateA mortgage backed certificate under which interest from the mortgage pool is paid directly to the certificate holder.

Pass-Through SecuritieMortgage backed securities issued by Ginnie Mae, which pay interest and principal payments on a monthly basis.

PatentInstrument of conveyance of title to public (government) land.

Patent DefectA defect plainly visible or as would be discovered by the exercise of ordinary care. A patent defect in a legal description is one which cannot be corrected on its face, and a new description must be used. See also: Latent Defect.

PatioOriginally, a courtyard, enclosed by columns, or an open courtyard. Modernly, a paved area adjoining a house, used for relaxation, outdoor cooking, eating, etc.

PayeeThe party that receives payment.

Payment CapA maximum amount for a payment under an Adjustable Mortgage Loan, regardless of the increase in the interest rate. If the payment is less than the interest alone, negative amortization is created.

PayoffThe payment in full of an existing loan or other lien.

Payoff EscrowAn escrow, specifically for the purpose of paying off an existing lien. Usually part of an existing escrow, and called a sub escrow.

PayorThe party that makes payment to another.

Pedestrian OverpassA bridge over a highway, railway, etc., for pedestrian traffic.

Pedestrian Traffic CountSee: Traffic Count.

Pedestrian UnderpassA tunnel, under a highway, used for pedestrian traffic.

PenaltyA punishment. In a real estate contract containing a liquidated damage clause, the clause is not valid if construed as a penalty. See: Liquidated Damages.

PennyMost popularly applied to nails. A measure of length, symbolized by the letter "d".

Penstock(1) A valve to regulate or direct the flow of water. (2) A conduit for a similar purpose.

Penthouse(1) A condominium or apartment on the roof of a building, used as a residence. (2) A small building on a roof, which houses elevator machinery, ventilating equipment, etc.

Per AnnumYearly, annually.

Per CapitaLiterally, by heads. Commonly, as individuals. In the right to receive a portion of the estate of a deceased person, one claiming a per capita right would claim an equal share as an individual and not a divided share as part of a family (per stirpes).

Percentage LeaseA lease commonly used for retail property in which the rental is based on the tenant's gross sales at the premises; often stipulates a base monthly rental plus a percentage of any gross sales above a certain amount.

Percentage RentSee: Percentage Lease.

PerchA seldom used unit of measurement equal to 16 1/2 feet.

PercolationThe absorption of liquid into soil by seepage.

Percolation (Perk) TestThe test to determine the capability of the soil to absorb liquid, both for construction and septic systems.

Percolation RateThe rate at which water moves through soil.

Per DiemDaily.

Perfect EscrowA complete escrow. When the escrow agent has all instruments and instructions necessary to carry out the transaction (purpose of the escrow).

PerformanceIn contracts, the carrying out of the promises given as consideration to form the contract.

Performance BondA binding agreement, often accompanied by surety and usually posted by one who is to perform work for another, that assures that project or undertaking will be completed as per the agreement or contract.

PerilAnything that can cause a loss (i.e., fire, wind,and hail).

Perimeter(1) The boundary lines of a parcel of land. (2) The length of said boundary lines.

Perimeter HeatingSee: Baseboard Heating.

Periodic EstateAn interest in leased property that continues from period to period – week to week, month to month, or year to year.

Periodic TenancyAn agreement to rent from period to period. The period is determined by the rental payment (weekly, monthly, yearly, etc.).

PeristyleA colonnade around a building or courtyard.

Permanent BuydownWhen points are paid toa lender to reduce the interest rate and loanpayments for the entire life of the loan.

Permanent MortgageA mortgage on completed construction for a long period of time, usually over ten years. See also: Take Out Loan.

Permanent Reference MarkerReferred to as a PRM, it is a fixed object that leads the surveyor to the point of beginning (POB). In most surveys, two different PRMs are used to locate the POB.

Permit SystemSystem used by state and local governments to monitor compliance with, and enforce building codes and other regulations.

PerpetuityContinuing forever. Legally, pertaining to real property, any condition extending the inalienability of property beyond the time of a life or lives in being plus twenty-one years.

Per SeBy itself; of itself; inherently.

Personal AssistantAn individual working for a broker or salesperson who handles non-sales-related aspects of real estate transactions. However, if the personal assistant is licensed, then he or she can also handle the sales-related aspects of the transaction.

Personal Property BrokerA loan broker operating under a special license to broker personal property loans. The loan broker may be paid in a lump sum or from the monthly interest payment.

Personal Property LoanA loan which is secured by both real and personal property. The minimum ratio of personal to real property is set by law. The credit of the borrower is a major consideration in making the loan. See also: Equity Loan.

PersonaltyPersonal property.

Per StirpesAs a representative, and not as an individual. In the laws of descent and distribution, one who takes because of the deceased ancestor. For example: A leaves equally to B and C per stirpes. C dies, leaving three children. The estate goes one half to B, one half to be divided among the three children of C. See also: Per Capita.

PHASee: Public Housing Agency.

Phase I Environmental Site AssessmentAn assessment of the environmental condition of a site (both land and improvements), often performed by an engineering consulting company. It would include: (1) A review of historical documents showing past ownership and use of the site. (2) Interviews with those who may have knowledge of past use. (3) A physical inspection of the site and adjoining properties. (4) A report which summarizes the findings and recommends any necessary action or recommends further investigation. Phase I may, but usually does not, involve sampling.

Phase II Environmental Site AssessmentA further assessment after "Phase I" to verify the presence (or absence) of contaminants in the water or soil at the site. Samples are taken.

Phase III Environmental Site AssessmentAn assessment after "phase I" and "phase II" to determine the extent of contaminants in the water and/or soil at the site, both as to the depth and breath of the contamination. Samples are taken.

Physical Age-Life Method Of DepreciationSee: Age-Life Method of Depreciation.

Physical DepreciationSee: Physical Deterioration.

Physical DeteriorationA reduction in utility resulting from an impairment of physical condition. For purposes of appraisal analysis, it is most common and convenient to divide physical deterioration into curable and incurable components.

Physical LifeThe normal life of an improvement, if properly maintained.

Picture WindowA large window used to let in light and a view, but not air.

Pier(1) A structure extending from the solid land out into the water of a river, lake, harbor, etc., to afford convenient passage for persons and property to and from vessels along its sides. (2) A heavy, vertical support member, of masonry, wood, or metal.

Pier And Beam FoundationA foundation using columns (piers) which extend from footings below ground to the slab above ground. The area between the ground and the slab is called the crawl space and may contain plumbing, heating ducts, and electrical wiring.

Piggyback LoanA loan made jointly by two or more lenders on the same property under one mortgage or trust deed. A 90% loan, for example, may have one lender loaning 80% and another (subordinate) lender loaning the top 10% (high risk portion).

PilasterA pier or column, which partly protrudes from a wall, or is attached to a wall as a decoration. If not strictly decorative, it may be a support member.

PileA vertical support member, driven into the ground (or bottom, if in water). May be of concrete, metal, or wood.

PillarA vertical support member, usually the main support. Is not attached at its sides.

PipelineAn extended connection of pipes for transporting liquids or gases, such as oil or natural gas.

PI (Principal And Interest)Used to indicate what is included in a monthly payment on real property. If the payment includes only principal and interest, property taxes and hazard insurance would make the total payment higher. (See: PITI).

Pitch(1) A mixture of resins; a black tar substance. (2) To incline, such as a sloping roof. The rate of incline is the pitch.

PITI (Principal, Interest, Taxes And Insurance)Used to indicate what is included in a monthly payment on real property. Principal, interest, taxes and insurance are the four major portions of a usual monthly payment.

PlaintiffThe party bringing a civil action against a defendant.

PlankLumber 2" to 4" in thickness, 8" or more in width.

Planned (Unit) DevelopmentA subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels. The lots are generally small, being the exact size of the improvements, or slightly larger.

Planning BoardHolds public hearings, investigates solutions for the planning issues at hand, and makes recommendations to the appropriate legislative authority. In New York City, the planning board and the zoning board are one entity known as the Board of Standards and Appeals.

Planning CommissionA board of a city, county, or similar local government, which must approve proposed building projects. Often must be confirmed by a higher board, such as a council.

PlansAll drawings necessary to a construction project, including the subcontractors' drawings. See also: Specifications.

Plaster Of ParisGypsum heated to form a fine white powder which, when wet, will dry hard.

PlatA map of a town, section, or subdivision indicating the location and boundaries of individual property.

Plat BookA book containing recorded subdivisions of land.

PlateSee: Wall Plates.

Platform ConstructionA type of framing used to build a house or building one story at a time, with each story serving as a platform for the next. Also called: Platform Framing.

Platform Frame ConstructionA common type of wood frame construction whereby each floor is built separately and supports (is a platform for) the next floor above. (See: Balloon Frame Construction; Post and Beam Frame Construction).

Plat (Plat Map)A map dividing a parcel of land into lots, as in a subdivision.

PledgeThe depositing (bailment) of goods (personal property) with a creditor as security for a debt.

Pledged Account LoanA loan partially secured by the buyer or third party depositing funds into a savings account as collateral security for the loan. A portion of the monthly payment is drawn from the account over the first years of the loan.

Pledged Account MortgageAn escrow accountestablished with part of a buyer's downpayment. The borrower/buyer's lender then withdraws money from the account each monthand applies it to the monthly payment.

Pledged Asset MortgageA method of substituting a pledged asset, such as a CD, for a cash down payment. A buyer can then borrow one hundred percent of the purchase price. In the event of default the lender may convert the pledged asset to cash, which would reduce the loan to value ratio.

PledgeeThe party to whom goods are pledged.

PledgorThe party delivering goods in pledge (pledging).

Plot(1) An area of ground for a specific use, such as a cemetery plot. (2) Ground on which an improvement is to be built.

Plot PlanA plan of the location of improvements on a parcel of land. Also called a plot map. Don't confuse with plat.

PlottageSee: Assemblage.

Plottage IncrementThe increase in value created by joining smaller adjacent properties into one large parcel, under a single ownership.

Plumb(1) To provide plumbing. (2) A weight used on a line (plumb line) to determine the exact right angle to the ground or a floor.

PlumbingThe pipes, fixtures, etc., necessary for the flow of water to a building, and flow of sanitary waste from a building.

PlyA layer or fold. Commonly used to describe the thickness of any built-up surface, such as plywood, veneers, tires, etc.

PlywoodA wood sheet made of layers (plies) of thin sheets, glued to a center sheet of thicker wood, the grain running at right angles.

PMISee: Private Mortgage Insurance.

Pmi Pass-Through CertificatesMortgage-backed securities of conventional mortgages insured by private mortgage insurance (PMI) companies. See: Mortgage Backed Securities.

POBSee: Point of Beginning.

Pocket CardA card issued by a state showing that an individual is licensed as a real estate broker or salesperson.

Pocket CardsContains a licensee's photo, name, and business address as well as the name and address of the affiliated broker; prepared, issued, and delivered by the Department of State incooperation with the Department of Motor Vehicles.

Point LetterA letter from a lender which guarantees the number of points on a loan for a given time.

Point Of BeginningThe starting point of the survey situated in one corner of the parcel in a metes-and-bounds description. All metes-and-bounds descriptions must follow the boundaries of the parcel back to the point of beginning.

Point Of Beginning (POB)A term used in metes and bounds descriptions. The description will start with the words "Beginning at a point" and end with "to the point of beginning".

PointsOne percent of the loan amount. Points can be charged for any reason but are often used for buydowns. Also called: Discount Points.

Police PowerThe government's right to impose laws, statutes, and ordinances to protect the public health, safety, and welfare, including zoning ordinances and building codes.

PolicyA general term used to describe all contracts of insurance.

Polychlorinated Biphenols (PCBS)Organic compounds manufactured as cooling and insulating agents for transformers and capacitors used in industry.

PoolSee: Mortgage Pool.

PorchAn extension from a structure, usually serving as part of the entrance. May be large enough for relaxation, and most often has its own roof, rather than a part of the structure roof.

Porter’s Wage Escalation FormulaTies rent escalation to the wages of a building’s cleaning and maintenance personnel (called “porters”). The formula provides that the tenant’s rent will increase by a specific amount per square foot for a specified increase in the porter’s hourly wages.

Portfolio Income1. Earnings from interest,dividends, annuities, and royalties not derived from the ordinary course of business. 2.Gain or loss from the disposition of property that produces portfolio income or held for investment purposes.

Portfolio LenderA lender who makes and holds loans rather than making loans and selling them in the secondary market.

Portfolio LendersFinancial institutions that make real estate loans, which they keep and service inhouse instead of selling them on the secondary markets.

PorticoA colonnade at the front of a building.

Positive CarryBorrowing against mortgages at a lower rate than the mortgage yield. See: Warehousing.

Positive Cash FlowSee: Cash Flow; Negative Cash Flow.

Positive EasementAn easement that allows the dominant tenant to use the servient tenement in a particular way.

Positive LeverageUsing borrowed money to increase the return on an investment. Example: Property is purchased for $100,000 cash and sold one year later for $150,000. The investment produced a return of 50%, less the cost of sale. Another property is purchased for $100,000 with $10,000 down and a $90,000 mortgage and sold one year later for $150,000. The investment produced a return of 500%, less the cost of the sale and the cost of the mortgage, still a much higher return than the cash purchase.

Positive SpreadSee: Positive Carry.

PossessionBeing in physical control of land or personal property, whether the owner or not. Possession may be lawful or wrongful.

Possessory InterestInterest that entitles the holder to possess and occupy property, now or in the future; an estate, which may be either a freehold or leasehold.

Possessory LienA lien allowing the creditor to hold the property until paid.

Possibility Of ReverterThe term shows no estate (interest) in property, but only the chance that an estate will exist at a future time. If a property were sold on the condition that it be used for a park, and, if not used for a park, would revert back to the seller, the seller would have a possibility of reverter.

Post(1) To give public notice by attaching to a post or wall or displaying in a public place. (2) After. (3) A vertical support. (4) To enter into ledgers or books, such as posting to an account.

Post And Beam ConstructionA type of framing with the floor for higher stories (and the roof) supported by beams that sit on top of posts and the outside wall perimeter. Also called: Post and Beam Framing.

Post And Beam Frame ConstructionA type of wood frame construction using beams inside the building as support as well as sidewalls. This allows for larger spans.

Post And LintelA system of construction based on vertical supports with horizontal cross beams. No arches are used.

PostdatedDating an instrument after the actual date of execution. Most often thought of in connection with checks, but sometimes used in states where certain days (Sundays and holidays) cannot be used to contract. The contract is still not legal if postdated for this reason.

Poststressed ConcretePlacing cables, in metal casing, in wet concrete. When the concrete dries, the cables are stretched, and the casing filled with grout. When the grout dries, the cables are released, transmitting the stress to the concrete.

PotableDrinkable.

Potential Gross IncomeRental income before deducting for vacancies, non-payment of rent and operating expenses.

Potentially Responsible PartyA term used for those who may be responsible for environmental cleanup of a contaminated site. These include present owners, owners at the time of contamination, those persons who actually caused the contamination, whether owners or not, and those who transported the hazardous material to the site. All are "potentially" responsible.

Power Of SaleClause in a mortgage or deed of trust giving the mortgagee or trustee the power to sell the property in the event of default. There are laws which govern the sale, which must be at public auction, but there is no court action (judicial foreclosure) necessary.

Power Of Sale ClauseA clause that allows a trustee to sell trust deed property without court supervision if the terms of the trust deed are violated.

Power Of TerminationThe right to terminate aconditional fee estate if the estate holder fails to meet the required conditions. Also called: Right of Re-entry. See: Conditional Fee. Compare: Possibility of Reverter.

Pr(1) Slang for the word profit. An expression not nationally used. (2) Public relations.

Practical DifficultiesOne reason for issuing azoning area variance—the zoning prevents the owner from making permitted use of the property.

Practicing LawThe domain of a duly licensed attorney. A real estate or escrow agent may not practice law. What constitutes practicing law varies with state statutes.

Prearranged Refinancing AgreementAn arrangement between a borrower and lender to refinance a loan at a later date. A construction loan, for example, could be refinanced to a long term loan.

Predatory LendingPractice of making loans with excessively high fees and misrepresented loan terms; predatory lenders often target borrowers who are financially unstable and who do not qualify for conventional loans.

PredecessorOne who goes before. Differs from ancestor in that predecessor may apply to corporations or one holding office. Ancestor applies only to persons.

Pre-Emption RightThe right given to settlers upon the public lands of the United States, to purchase the lands at a limited price in preference to others. Modernly, equivalent to a first refusal right.

Prefabricated HouseA house constructed of manufactured components, assembled partly at the site rather than totally on the site. Also called a modular house.

PrefabricationThe manufacturing of parts of a structure, such as walls, roofs, etc., which are assembled at the construction site. More recently called modular housing.

Pre-Foreclosure SaleA sale under which a lender allows a borrower to avoid foreclosure by selling the mortgaged property for an amount less than the amount necessary to pay off the mortgage loan.

Preliminary Title ReportA report showing the condition of title before a sale or loan transaction. After completion of the transaction, a title insurance policy is issued.

Preliminary Title SearchA title search resulting in a Preliminary Title Report, Commitment or Binder.

PremisesThe specific section of a deed that states the names of the parties, recital of consideration, operative words of conveyance, legal property description, and appurtenance provisions.

Premium(1) Money paid for an insurance policy. (2) A bonus. The opposite of a discount.

Prepaid InterestInterest paid before becoming due.

Prepaid ItemsThose expenses of property which are paid in advance and will usually be prorated upon sale, such as taxes, insurance, rent, etc.

Prepayment ClauseIn a mortgage, the statement of the terms on which the mortgagor may pay the entire or stated amount of the mortgage principal at some time prior to the due date.

Prepayment PenaltiesAdditional money charged by a lender for paying off a loan early.

Prepayment PrivilegeThe right to prepay a loan without penalty, either in full or in part. See also: Lock-in; Or More Clause; Prepayment Penalty.

Pre-QualifyingA method by a lender allowing a prospective home buyer to determine how much may be borrowed on a mortgage loan before making a formal application. This enables the buyer to approximate the price range for the home purchase.

PrescriptionWritten before.

Prescriptive EasementThe granting of an easement by a court, based on the presumption that a written easement was given (although none existed), after a period of open and continuous use of land.

Present Value1. The current appraised value of property. 2. The current value of money that will be received at a future date. See also: Present Value Of $1.

Present Value Of $1The value today of $1 to be received at a future date. Example: If you invested $1 today, you would have more than $1 in a year. Therefore, $1 received a year from today is worth less than $1 received today.

PreservativeA chemical covering for wood or metal, preventing insect destruction or rot in the former, and rust in the latter.

Prestressed ConcreteStretching wire or other reinforcement in wet concrete, then releasing it after the concrete has dried, causing the tension (stress) toward compaction of the concrete.

PresumptionAn inference reached by probability and reasoning in the absence of absolute fact. A presumption of law is the required drawing of an inference from existing facts. The presumption may be rebuttable or conclusive. If rebuttable, facts may be presented to refute the presumption. If conclusive, no facts may be presented, as in estoppel.

Pretermitted ChildA child born after his/her parent's will is executed.

Pretermitted SpouseA spouse married after the will of his/her spouse is executed.

Preventive MaintenanceRoutine maintenance and inspections that keep equipment and the property in good working order.

PriceModernly, the amount of money paid for property which is purchased, although the word is general enough to include anything given (not necessarily money) in exchange for something else.

Price FixingAn antitrust violation in which competitors set a standard commission rate.

Price Take-Off MethodSee: Quantity Survey Method.

Prima FacieAt first sight; on the face of it. Presumed true unless disproved.

Primary LeaseThe original lease, as distinguished from a sub lease.

Primary MarketsLenders who make mortgage loans directly to borrowers. Also called: Primary Mortgage Markets. Compare: Secondary Markets.

Prime Lending RateThe most favorable interest rates charged by a commercial bank on short term loans, (not mortgages).

Prime Mortgage MarketThe market in which the loan is originated. The loan may then be sold in the Secondary Mortgage Market.

PrimerA coat of sealant or other preparatory substance, applied to a surface before a finish coat.

Prime TenantThe major tenant in a building, shopping center, etc. It may be necessary to have a prime tenant in order to obtain construction financing. The tenant may be considered "prime" because of its financial strength, rather than by the amount of space it occupies.

Principal, Interest, Taxes, And InsuranceSee: PITI.

Principal MeridianOne of 35 north and south survey lines established and defined as part of the rectangular survey system (government survey method)

Principal Meridian (Prime Meridian)The meridian being used as a reference point in a specific property description. See also: Base Line; Meridian.

Principal ResidenceThe prime or main living quarters. It may be based on time spent at the location or declared by the resident to be his/her principal residence. It is important, for example, for tax purposes and declarations of homestead.

Principle Of ConformityThe appraisal theory stating that buildings that are similar in design, construction, and age to other buildings in the area have a higher value than they would have in a neighborhood of dissimilar buildings.

PriorityThe order of position or time. The priority of liens generally is determined by the chronological order in which the lien documents are recorded; tax liens (like special assessments), however, have priority, even over previously recorded liens.

Priority ClauseA clause in a junior lien, acknowledging the priority of a prior lien.

Private ConduitSee: Conduit.

Private Land GrantA grant of public land to an individual.

Private Mortgage InsuranceInsurance against a loss by a lender in the event of default by a borrower (mortgagor). The insurance is similar to insurance by a governmental agency such as FHA, except that it is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment.

Private Mortgage Insurance (PMI)Insurance offered by private companies to insure a lender against borrower default.

Private PropertyProperty owned by a person, group, corporation, or other entity, not a governmental body.

Private RestrictionA restriction imposed on property by a previous owner or the subdivision developer; a restrictive covenant or a condition in a deed.

PrivityMutual or successive relationship to the same rights of property, such as heir and ancestor, assignee and assignor.

ProbateThe formal judicial proceeding to prove or confirm the validity of a will or proof of heirship and to settle the affairs of the deceased.

Probate CourtA court having jurisdiction of estates, whether of a deceased, a minor, or a incompetent person.

Probate SaleSale of property from an estate. must be done under the supervision and procedures of the probate court.

Procedural LawA law that establishes a legal procedure for enforcing a right. Compare: Substantive Law.

ProceedsA term commonly used to describe the money that goes to the seller of property after costs of the sale and payoffs. The net cash to the seller.

Procuring CauseThe effort that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.

ProfitThe difference of income less expenses. Further broken down into net profit and gross profit, (see which).

Profit And Loss StatementA statement showing the income and expenses of a business over a stated time, the difference being the profit or loss for a period.

Profit A PrendreA right to take from the soil, such as by logging, mining, drilling, etc. The taking (profit) is the distinguishing characteristic of an easement, although easement is frequently used as a synonym.

Proforma StatementA schedule of the projected income and expenses for a real estate investment over a given period.

Progress BillingBilling by a contractor as an agreed to amount of work is completed. This can be based on a percentage of work completed or stages of work completed.

ProgressionThe gaining of value from surroundings. Better properties cause lesser properties in the immediate area to be worth more than if the better properties were not as good. The opposite is regression.

Progress PaymentsPayments based on Progress Billing. See: Progress Billing.

ProjectAny development built with HUD financial assistance at any phase.

PromiseeOne to whom a promise has been made, such as the lender under a promissory note.

PromisorOne who makes a promise. The borrower under a promissory note.

Promissory EstoppelA doctrine applied when someone makes a technically unenforceable promise, but another person acts in reasonable reliance on the promise. If the person who relied on the promise will suffer harm unless it is enforced, a court may enforce it.

PropertyAnything which is owned by someone. See also: Real Estate.

Property BriefAn expression, not nationally used, meaning a description of a property for sale, which is submitted to a prospective purchaser.

Property Disclosure ActsState mandated seller's property disclosure reports. These reports place the burden of defect disclosure on the seller. Agents are not required to discover property defects but are required to disclose them if they are known.

Property InsuranceCoverage that indemnifies a person with an interest in the property for a loss caused to the property by a covered peril.

Property LineThe boundary line of a parcel of land.

Property ManagementThe operation of the property of another for compensation. Includes marketing space; advertising and rental activities; collecting, recording, and remitting rents; maintaining the property; tenant relations; hiring employees; keeping proper accounts; and rendering periodic reports to the owner.

Property Management AgreementThe contract between an owner and property manager (or management company), setting forth the duties of and payment for said manager.

Property Management ReportA report prepared by property managers to inform owners about the status of their property, often including income, expenses, and disbursements information.

Property ManagerA person hired by a real property owner to administer, market, merchandise, and maintain property, especially rental property.

Property Owners' AssociationSee: Homeowners' Association.

Property Residual TechniqueAn appraisal technique whereby land and building are valued as a single unit. The income (net operating income) is capitalized (divided) by an overall capitalization rate to reach estimated value. See: Building Residual Technique: Land Residual Technique.

Property TaxTaxes levied by the government against either real or personal property. The right to tax real property in the United States rests exclusively with the states, not with the federal government.

Property Tax Deferral (PTD)Reverse mortgages that pay annual property taxes; usually offered by state or local governments

Proprietary LeaseMost commonly used in relation to stock cooperatives, whereby the owners of stock lease units (apartments).

ProprietorshipSee: Sole Proprietorship.

Pro-Rata ShareA proportionate share.Proration The division of expenses between buyer and seller in proportion to the actual usage of the item represented by a particular expense.Also called: Adjustments.

Pro RateTo divide in proportionate shares, such as taxes, insurance, rent, or other items which buyer and seller share as of the time of closing or other agreed-upon time.

ProrationThe proportional division or distribution of expenses of property ownership between two or more parties. Closing statement prorations generally include taxes, rents, insurance, interest charges, and assessments.

ProsceniumOriginally the stage of a theater. Modernly, the portion of the stage on the audience side of the curtain.

ProspectA potential buyer, seller, or tenant, rather than one which is actually in the process of buying, selling, or leasing.

ProspectusA printed advertisement usually in pamphlet form, presenting a new development, subdivision, business venture, or stock issue.

Provisional PaymentsPayments to a contractor on a cost reimbursement contract to pay for the contractor's expenses as work progresses.

Proximate CauseThe direct cause, the result of which is foreseeable. Example: A cow kicks over a lantern and a major city burns to the ground. The act of the cow would be the actual cause but not the proximate (foreseeable) cause.

ProxyAlthough the term legally encompasses any agent, it is most frequently used in connection with representation at a meeting, especially when voting is concerned. The written authority to act is called a proxy, as well as the person acting.

PRPSee: Potentially Responsible Party.

PTDSee: Property Tax Deferral.

Public AccommodationTitle III of the Americans with Disabilities Act requiring all public and commercial facilities are 100% accessible to the disabled.

Public Domain LandSee: Public Land.

Public GrantWhen land owned by the government is transferred to an individual.

Public HousingA governmental housing project, usually to accommodate low income families.

Public Housing AgencyAny government agency authorized by law to develop or manage low-income housing.

Public LandLands belonging to the federal government, not reserved for government use but subject to sale or other disposal.

Public Land SystemLegal descriptions of land by reference to the public land survey. Often called sectional property descriptions.

Public NuisanceA land use that threatens public health, safety, morals, or welfare, or constitutes a substantial annoyance to the public.

Public Offering StatementSee: Public Report.

Public RecordThe official collection of legal documents filed with the county recorder. See:Constructive Notice; Recording.

Public RecordsUsually at a county level, the records of all documents which are necessary to give notice. The records are available to the public. All transactions for real estate sales should be recorded.

Public ReportA report given to prospective purchasers in a new subdivision, stating the conditions of the area (costs of common facilities, availability of schools, noise factor if near an airport, etc.), issued by the real estate commission.

Public RestrictionA law or regulation limiting orregulating the use of real property.

Public SaleSale at auction, open to the public. May be a foreclosure sale, tax sale, excess state land sale, or other type. A "public" sale generally requires notice (advertising) and must be held in a place accessible to the general public.

Public UtilityA company such as the telephone company, electric company, or gas company, which supplies a necessity in our modern life.

Public Utility EasementA right granted by a property owner to a public utility company to erect and maintain poles, wires, and conduits on, across, or under her or his land for telephone, electric power, gas, water, or sewer installation.

PUDSee: Planned Unit Development.

PufferOne hired to make false bids at an auction in order to raise the price of the property being sold.

PuffingAn opinion not made as a representation of fact, but intended to enhance the value of the property.

Punitive DamagesSee Exemplary Damages.

Pur Autre VieLatin, meaning “for the life of another.” A life estate pur autre vie is a life estate measured by the life of a person other than the grantee.

Purchase And LeasebackSee: Sale-Leaseback.

Purchase And Sale AgreementSee: Purchase Agreement.

Purchase MoneyWhen the seller finances all orpart of the sale price of a property for a buyer.

Purchase Money BondA bond having a purchase money mortgage as security.

Purchase Money Mortgage(1) A mortgage given from buyer to seller to secure all or a portion of the purchase price. (2) Any mortgage from which the funds are used to purchase the property.

Purchase-Money MortgageA note secured by a mortgage or deed of trust given by a buyer, as a mortgagor, to a seller, as a mortgagee, as part of the purchase price of the real estate.

Purchase Money Trust DeedSee: Purchase Money Mortgage.

Purchase OfferSee: Purchase Agreement.

Purchaser's PolicySee: Owner's Policy.

PurlinA horizontal supporting beam of a roof frame, parallel to the ridge line and placed under the rafters.

PuttyA soft clay-like mixture used as a filler for cracks, joints, and to install window panes.

Pylon(1)A monumental mass which flanks an entrance, such as pillars at a gateway. (2) A tower, such as the steel towers which support high tension wires.

Pyramid RoofA roof resembling a pyramid; having four sloping sides, either forming a point, as a church steeple, or running at a lesser angle to a horizontal ridge, as is common on free standing garages.

Pyramid ZoningIncluding more restrictive uses in less restrictive uses. Examples: Residential use (more restrictive) would be allowed in an area zoned commercial (less restrictive), commercial (more restrictive) would be allowed in an area zoned industrial (less restrictive).