|
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 |
