Definitions Of Key Real Estate Terms P
This article provides the definitions of key estate terms beginning with the letter P.
Partially Amortized
is a loan repayment schedule where the payments on the principal are not sufficient to pay off the loan over its term,
Participating Broker
is a real estate broker who assists the listing broker in procuring a buyer.
Participation Mortgage
is participation mortgage where the lender (mortgagee) is entitled to share in the rental or resale proceeds from a property owned by the borrower (mortgagor).
Partnership
is an association of two or more individuals who carry on a continuing business to make a profit.
Party Wall
is a dividing wall between two adjoining buildings or homes that is shared by the owners of each residence or business. The wall is sometimes constructed over the center of the property line dividing two residences or businesses so that one half of the wall is on each property. They are sometimes two abutting walls built at different times.
Payment Cap
is a limit on the amount or percentage that a payment can change at any one time of adjustment with an Adjustable Rate Mortgage. Some Adjustable Rate Mortgages have a maximum payment amount a buyer could ever be expected to pay per month.
Percentage Lease
is a lease whereby rental is a percentage of gross or net income from sales or services. Such a lease often guarantees a minimum or maximum rent, regardless of business volume. This type of a lease may also have a base lease plus a percentage of sales.
Percolation Test
is a soils test to determine if will absorb and drain water adequately to install a septic system.
Personal Property
is also called chattels and is all items that do not fit the definition of real estate.
Physical Deterioration
is a reduction in a property’s value resulting from a decline in physical condition.
Planned Unit Development
is a real estate development, usually which is planned and developed as a complete community, including residential, commercial, recreational, and school facilities and potentially other uses.
Plaintiff
is the person who brings a lawsuit.
Plat
is a map identifying how a tract of land is subdivided into lots, blocks, streets, easements, and the boundary dimensions of each.
Plottage
is the merging or consolidating of adjacent lots into one larger lot, with the consequent result of improved usability and increased value; also called assemblage.
Point of Beginning (POB)
is the starting point in a metes and bounds survey of a property, which is usually a specific monument.
Police Power
is the inherent power, incident to sovereignty, of a state to regulate and exercise reasonable control over matters of public health, public morals, public safety, and in general, all things relating to the general welfare including building codes and zoning ordinances.
Power of Attorney
is a written instrument that authorizes a person to act on someone else’s behalf in a legal or business matter.
Prepaid Interest
is paying the interest before it is due,
Prepaid Item
is an item on a closing statement that has been paid in advance by the seller, such as insurance premiums or property taxes, for which they must be reimbursed by the buyer.
Prepayment Penalty
is a fee that is charged to the borrower by the lender if they try to pay off their mortgage ahead of time. Lenders like to impose these terms for a specified amount of time on a mortgage to guarantee that they get a certain return on their investment.
Primary Mortgage Market
is lenders, such as savings and loan associations, commercial banks, and mortgage companies, who make mortgage loans directly to borrowers.
Prime Rate
is the minimum interest rate charged by a commercial bank on short term loans to its largest and most credit worthy customers.
Prime Tenant
is the tenant who is the largest single occupant of a rental property.
Principal
is the original amount in a loan of the total due and payable at a certain date. A main party to a transaction – the person for whom the agent works.
Principal Residence
is means the dwelling where the applicant normally lives, during the major portion of the calendar year.
Priority
is the order of position or time.
Private Mortgage Insurance
is an insurance guaranteeing the payment of a loan. This type of insurance is paid by the borrower as a monthly feed added to the mortgage payment. This type of mortgage insurance is normally charged when the loan exceeds 80% of the property value. PMI may be removed from the monthly payment after the loan to property value is less than 80%. Check with your mortgage company to determine their requirements.
Probate
is the legal process of administering the estate of a deceased person by resolving all claims and distributing the deceased person’s property under the valid will.
Promissory Note
is a written debt instrument that lists a specified amount promised to a particular party, to be paid over predetermined period of time.
Property Manager
is the person or organization who supervises the operation of a property, making sure it is properly leased, well maintained, competitive with other sites, and otherwise managed according to the owner’s objectives.
Property Tax
is a tax levied by the government on real property. In New Mexico the property tax is charged against one third of the assessed value of the real property.
Prorations
are expenses that are divided or distributed between the buyer and seller at closing of a transaction.
Prospect
is a party who may be interested in buying or selling real property.
Protected Class
is a group of people identified by the Federal Government and State governments in consideration of civil rights legislation. Federally protected classes include race, color, religion, national origin, sex, familial status, and handicap. The New Mexico Human Rights Act prohibits discrimination based on race, religion, color, national origin, physical or mental handicap, sexual orientation, and spousal affiliation in the sale, leasing, showing, advertising, or financing real estate, including residential, commercial and industrial properties. The Act also applies to employers of 4 or more employees.
Pur Autre Vie
is the French translation “for another’s life.”
Puffing
is the exaggerated opinions of a property.
Purchase Money Mortgage
is a mortgage given by the seller to the buyer to cover all or part of the sale price. In other words purchase money mortgage is seller financing.
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Definitions Of Key Real Estate Key Terms P
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