|
Partial
payment |
A payment that is
less than the agreed upon monthly payment on a
loan |
|
Partition |
The forced dividing
of real estate among parties who were previously its
co-owners |
|
Patent |
A first in a series
of documents by which the federal or state government
transfers ownership of public lands to an
individual |
|
Pay-off
amount |
The total balance on
an existing loan or mortgage |
|
Percolation
test |
A testing of the
soil on a property to evaluate if its absorption and drainage
capacity will allow installation of a septic
system |
|
Personal
property |
Property that does
not qualify as real property |
|
PITI |
Acronym for
principal, interest, taxes and insurance, the four components
of a monthly mortgage payment, which are taken into account
when a lender is evaluating a borrower's financial
qualifications for a loan |
|
Plat, or
Plot |
A map showing a
piece of land subdivided into lots, streets and common area,
if applicable |
|
P.M.I, or Private
Mortgage Insurance |
Acronym for Private
Mortgage Insurance, see below |
|
Point |
A one-time fee
charged by the lender for originating a loan, one point being
equal to one percent of the amount of the
mortgage |
|
Power of
attorney |
A written legal
document authorizing a person to act as agent for another, to
the extent outlined in the document |
|
Power of
Sale |
A provision in a
will, mortgage or trust agreement authorizing the sale or
transfer of land in accordance with the terms of the
provision |
|
Pre-Approval |
A commitment from a
lender to loan a certain amount of money to a buyer at a
designated interest rate and for a specified period of time,
which gives the buyer an advantage in competing to purchase
real estate or a home |
|
Preforeclosure
sale |
The sale of a
property by a mortgagor for less than the amount owed to the
lender of the mortgage for the property, thereby allowing the
mortgagor to avoid foreclosure, and done with the approval of
the lender |
|
Prepayment
penalty |
A fee that is
charged by the lender to a borrower who pays off a loan
earlier than the due date, thereby costing the lender interest
and other income from charges |
|
Pre-qualification |
The process by which
the amount of loan a prospective buyer will be eligible to
borrow is determined, based on his or her income and expenses,
which can be used to demonstrate the buyer's financial
capability to the seller |
|
Prime
rate |
The most favorable
interest rate that banks charge, usually to their preferred
customers |
|
Principal |
The amount borrowed,
not including interest or other charges |
|
Principal
balance |
The portion of the
original amount borrowed that is due on a loan or mortgage at
any point in time |
|
Private mortgage
insurance, or P.M.I. |
A policy that
insures that the lender will recover a specific percentage of
the loan amount from the insurance company in the event that
the borrower defaults; is not backed by any government agency;
is usually required when a down payment of less than 20% is
put on real estate or a home purchased |
|
Probate |
The court
proceedings to prove that a will is valid |
|
Procuring
cause |
The action or person
who brings about the desired result; e.g., under an open
listing, the broker who brings in the buyer who actually
purchases the property |
|
Promissory
note |
A written promise to
pay a specified amount of money in a designated period of
time, which is also transferable to a third
party |
|
Prorate |
To divide the
proportionate share of existing expenses on a piece of
property between the seller and buyer, e.g., taxes owed at the
time of a transfer of title from the seller to the
buyer |
|
PUD (Planned Unit
Development) |
A multi-unit
property or subdivision that includes common property that is
owned and maintained by a homeowners' association, for the use
of the individual owners |
|
Purchase and sale
agreement |
A written contract
signed by the buyer and seller that states the conditions
under which a property will be transferred or
sold |
|
Purchase money
mortgage |
An agreement whereby
financing provided by the seller is included in the purchase
price |
