Word | Definition |
Parcel | An officially described piece of land.
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Parking strip | The strip of grass between the sidewalk and the street in front of a house. |
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).
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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
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Passive solar system | A system that supplies solar heat without the use of electric fans or pumps.
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Patent defect | A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
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Payee | The person to whom money is paid or is to be paid.
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Payment cap | A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
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Per-diem interest | Interest charged or accrued daily.
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Percolation test | A test used to determine the ability of soil to accommodate a septic system.
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Perennial | Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.
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Personal Property | All property which is not land or part of the existing improvements, including built-in appliances, etc. Example- Stocks, bonds, furniture, automobiles, potted plants, clothing or promissory notes.
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Pest-control inspection | A common pest-control inspection is a termite inspection, which is required in some states, such as California.
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PITI | The total amount representing principal, interest, taxes and insurance which are the basis of a monthly payment.
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PITI (Principal, Interest, Taxes, Insurance) | When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
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Planned communities | The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.
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Planned-unit development | Residents own the home and the land, and share the use and financial responsibility for common areas.
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Point | Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.
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Points | A charge made by the lender in addition the other fees and costs of originating the loan.
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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.
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Possession | When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
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Power of attorney | A written authorization for another person or agent to perform specific acts on behalf of a principal. This may be granted as either a general or limited power.
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Pre-approval letter | A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
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Pre-payment penalty | An agreement to pay a specified penalty for the full or partial payment of a note before its maturity date.
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Pre-sold home | Homes that are sold before they are built.
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Preliminary title report | A report from a title company as to the present condition of title made prior to the issuance of the actual title policy.
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Prepaid expenses | The costs for taxes, insurance and assessments paid before the due date.
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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.
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Prepayment penalty | Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.
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Prequalification | Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
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Price range | The range of how much a buyer is willing to pay for a home.
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Principal | A party to a contract ; also means, the amount of money borrowed upon which interest is being charged.
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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.
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Principle of progression | An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
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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.
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Privacy fence | A structure erected between two pieces of property.
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Private Mortgage Insurance (PMI) | Insurance policy required by most lenders when the down payment of the purchase price is less than 20%. This insurance protects the lender against default on the part of the borrower.
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Probate sale | A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.
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Programming | A written summation by an architect of a project's design objectives, constraints and criteria.
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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.
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Property line | The official dividing line between properties.
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Property report | A disclosure issued by the state when a time-share project is located or sold.
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Property tax | Property taxes are calculated at about 1.5 percent of the current market value.
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Property tax deduction | The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
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Property value | The value of a piece of property is based on the price a buyer will pay at a certain time.
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Prorate or Pro-rata | A procedure wherein adjustments are made. Items Pro- rated are usually taxes, insurance, rents and interest on loans.
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Proration | 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.
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Public Report | A report issued by the Department of Real Estate containing a wide variety of information to a prospective buyer of subdivided property.
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Purchase agreement | A document which details the purchase price and conditions of the transaction.
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Purchase money Trust Deed/Note | When a seller carries back a note secured by a deed of trust on his property, it is called a purchase money obligation. Purchase money trust deeds are exempt from the usury limitations, the viewpoint being that the seller has agreed to the extended payment of the purchase, and the interest itself is a part of the purchase price.
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Purchase-money mortgage | Purchase-money mortgage
A mortgage that a borrower obtains to acquire a property.
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