PACKAGE MORTGAGE
a mortgage arrangement whereby the principal amount
loaned is increased because personalty (e.g., appliances)
as well as realty serve as collateral.
Back
to top -- View
Real Estate Listings
PAD SITE an individual freestanding
site for a retailer, often adjacent to a larger shopping
center.
Back
to top -- View
Real Estate Listings
PAPER credit given, evidenced by
a written obligation that b backed by property.
Back
to top -- View
Real Estate Listings
PAPER PROFIT an increase in value
above original cost or basis that would be realized
if the property were sold; how the property is not
offered for sale.
Back
to top -- View
Real Estate Listings
PARCEL a part of portion of a piece
of land.
Back
to top -- View
Real Estate Listings
PAROL verbal, not in writing.
Back
to top -- View
Real Estate Listings
PAROL CONTRACT An oral contract
as compared to one that is in writing
Back
to top -- View
Real Estate Listings
PAROL EVIDENCE RULE An evidence
rule of law which says that oral agreements which
modify the subject matter of a written contract will
be inadmissible in a court of law for the purpose
of contradicting what is written in the contract.
Back
to top -- View
Real Estate Listings
PARTIAL INTEREST a less than fee
simple interest in real property.
Back
to top -- View
Real Estate Listings
PARTIALLY AMORTIZED MORTAGAGE a
method of loan repayment in which the balance of the
outstanding loan is not zero at maturity and thus
a balloon payment is required.
Back
to top -- View
Real Estate Listings
PARTIAL TAKING acquisition by condemnation
of only part of the property or some property rights.
Back
to top -- View
Real Estate Listings
PARTICIPATION (or PARTICIPATING) MORTGAGE
one that allows the lender to share in part of the
income or resale proceeds.
Back
to top -- View
Real Estate Listings
PARTITION the division of real property
between those who own it with undivided interest
Back
to top -- View
Real Estate Listings
PARTNERSHIP an agreement between
2 or more entities to go into business or invest.
Either partner may bind the other, within the scope
of the partnership. Each partner is liable for all
the partnership's debts. A partnership normally pays
no taxes, but merely files an information return.
The individual partners pay personal income tax on
their share of income.
Back
to top -- View
Real Estate Listings
PARTY WALL a wall built along the
line separating 2 properties, partly on each parcel.
Either owner has the right to use the wall and has
an easement over that part of the adjoining owner's
land covered by the wall.
Back
to top -- View
Real Estate Listings
PASSIVE ACTIVITY INCOME under the
1986 tax act, is generated by: 1, any trade or business
conducted for profit in which the taxpayer does not
materially participate. 2. any rental activity, whether
or not the taxpayer materially participates.
Back
to top -- View
Real Estate Listings
PASSIVE INCOME 1. Generally, income
from rents, dividends, interest, and gains from the
sale of securities. 2. a new meaning created by the
Tax Reform Act of 1986, distinguishes passive income
or loss from active income and portfolio income.
Back
to top -- View
Real Estate Listings
PASSIVE INCOME GENERATOR a business
or investment that produces passive income which can
be used to offset passive losses.
Back
to top -- View
Real Estate Listings
PASSIVE INVESTOR 1. one who invests
money but does not manage the business or property.
Back
to top -- View
Real Estate Listings
PASSIVE SOLAR HEATING a system of
features incorporated into a building's design to
use and maximize the effects of the sun's natural
heating capability.
Back
to top -- View
Real Estate Listings
PASS-THROUGH CERTMCATES (OR SECURITIES)
interests in a pool of mortgages sold by mortgage
bankers to investors. Money collected as monthly mortgage
payments is distributed to those who own certificates.
Back
to top -- View
Real Estate Listings
PATENT conveyance of title to government
land.
Back
to top -- View
Real Estate Listings
PAYBACK PERIOD the amount of time
required for cumulative estimated future income from
an investment to equal the amount initially invested.
It is used to compare alternative investment opportunities.
Back
to top -- View
Real Estate Listings
PAYMENT CAP a contractual limit
on the percentage amount of adjustment allowed in
the monthly payment for an adjustable rate mortgage
at any one adjustment period. Generally it does not
affect the interest rate charged. If the allowable
payment does not cover interest due on the principal
at the adjusted rate of interest, negative amortization
will occur.
Back
to top -- View
Real Estate Listings
PENALTY money one will pay for breaking
a law or violating part or all of the terms of a contract.
Back
to top -- View
Real Estate Listings
PENTHOUSE a luxury housing unit
located on the top floor of a high-rise building.
Back
to top -- View
Real Estate Listings
PERCENTAGE LEASE a lease of property
in which the rental is based on a percentage of the
volume of sales made upon the leased premises. It
usually stipulates a minimum rental and is regularly
used for retailers who are tenants.
Back
to top -- View
Real Estate Listings
PERCENTAGE RENT rent payable under
a percentage lease. Typically the percentage applies
to sales in excess of a pre-established base amount
of the dollar sales volume.
Back
to top -- View
Real Estate Listings
PERCOLATION TEST a procedure to
measure the drainage characteristics of the soil on
a lot. Required in the proper design of septic tank
drainfields.
Back
to top -- View
Real Estate Listings
PERFORMANCE in contract law, the
completion of duties and obligations specified in
a contract.
Back
to top -- View
Real Estate Listings
PERFORMANCE BOND one issued by an
insurance company; posted by a party who is to perform
certain work. If the work is not performed, the insurer
promises to complete the work or pay damages up to
the amount of the bond.
Back
to top -- View
Real Estate Listings
PERMANENT MORTGAGE a mortgage for
a long period of time (over 10 years).
Back
to top -- View
Real Estate Listings
PERMIT a document, issued by a government
regulatory authority, that allows the bearer to take
some specific action.
Back
to top -- View
Real Estate Listings
PERPETUITY the condition of being
never ending. Most states attempt to outlaw perpetuities
because of potential problems. A perpetual income
stream may cause bankruptcy. A deed that keeps property
in a family in perpetuity can cause financial hardship.
Back
to top -- View
Real Estate Listings
PERSON in law, an entity having
legal responsibility. Legally, a natural person is
a human being who has reached majority. (Compare with
minor.) An artificial person may be a corporation;
in some instances partnerships, governments, and certain
other bodies are considered persons.
Back
to top -- View
Real Estate Listings
PERSONAL RESIDENCE the dwelling
unit that one claims as one's primary home, This dwelling
establishes one's legal residence for voting, tax,
and legal purposes.
Back
to top -- View
Real Estate Listings
PERSONALTY personal property, i.e.,
all property that is not realty. Property that is
movable, not fixed to land.
Back
to top -- View
Real Estate Listings
PER STIRPES a legal method of distributing
an estate to include the descendants of a deceased
legatee, whose share is apportioned among linear descendants.
Back
to top -- View
Real Estate Listings
PHOTOVOLTAIC the process of converting
light directly into electricity using specially designed
silicon cells.
Back
to top -- View
Real Estate Listings
PHYSICAL DEPRECIATION OR DETERIORATION
the loss of value from all causes of age and action
of the elements.
Back
to top -- View
Real Estate Listings
PIGGYBACK LOAN 1. a combination
of the construction loan with the permanent loan commitment
Back
to top -- View
Real Estate Listings
PLAINTIFF the person who brings
a lawsuit. Contrast with defendant.
Back
to top -- View
Real Estate Listings
PLANNED UNIT DEVELOPMENT (PUD) a
zoning classification that allows flexibility in the
design of a subdivision. Planned Unit Development
zones generally set an overall density limit for the
entire subdivision, allowing the dwelling units to
be clustered to provide for common open space.
Back
to top -- View
Real Estate Listings
PLANNING COMMISSION a group of citizens
appointed by local government officials to conduct
hearings and recommend amendments to the zoning ordinance.
The planning commission generally oversees the work
of a professional planning department, which prepares
a comprehensive plan. May also be called a planning
board, zoning commission, or zoning board, depending
on locality.
Back
to top -- View
Real Estate Listings
PLAT a plan or map of a specific
land area.
Back
to top -- View
Real Estate Listings
PLAT BOOK a public record containing
maps of land, showing the division of the land into
streets, blocks, and lots and indicating the measurements
of the individual parcels.
Back
to top -- View
Real Estate Listings
PLEDGED ACCOUNT MORTGAGE (PAM) a
type of home.
Back
to top -- View
Real Estate Listings
PLOTTAGE VALUE increment in the
value of land comprised purchase loan under which
a sum of cash contributed by the by assemblage of
smaller plots into one ownership. owner is set aside
in an account pledged to the lender.
Back
to top -- View
Real Estate Listings
PLOT PLAN a diagram showing the
proposed or existing use of a specific parcel of land.
Back
to top -- View
Real Estate Listings
PLOTTAGE creating plottage value
of land by assembling small, adjacent parcels of land
into a larger, more useful parcel.
Back
to top -- View
Real Estate Listings
POCKET CARD required for salespersons
and brokers in most states. Issued by the state licensing
agency, it identifies its holder as a licensee and
must be carried at all times.
Back
to top -- View
Real Estate Listings
POINTS fees paid to induce lenders
to make a mortgage loan. Each point equals 1% of the
loan principal. Points have the effect of reducing
the amount of money advanced by the lender. Same as
discount points.
Back
to top -- View
Real Estate Listings
POLICE POWER the right of any governmental
body to enact and enforce regulations for the order,
safety, health, morals, and general welfare of the
public.
Back
to top -- View
Real Estate Listings
PORTFOLIO INCOME interest, dividends,
royalties (unless earned in the ordinary course of
business) and gains from the sale of property that
generates this type of income. Under the Tax Reform
Act of 1986 this type of income cannot be used to
offset passive activity losses.
Back
to top -- View
Real Estate Listings
POSITIVE CASH FLOW same as cash
flow.
Back
to top -- View
Real Estate Listings
POSITIVE LEVERAGE the use of borrowed
funds that increases the return on an investment.
Back
to top -- View
Real Estate Listings
POSSESSION the holding, control,
or custody of property for one's use, either as owner
or person with another right.
Back
to top -- View
Real Estate Listings
POTENTIAL GROSS INCOME the amount
of income that could be produced by a real property
assuming no vacancies or collection losses. Does not
include miscellaneous income. Contrast with cash flow,
net operating income.
Back
to top -- View
Real Estate Listings
POWER OF ATTORNEY an instrument
authorizing a person to act as the agent of the person
granting it.
Back
to top -- View
Real Estate Listings
POWER OF SALE a clause sometimes
inserted in mortgages or deeds of trust; grants the
lender (or trustee) the right to sell the property
upon certain default. The property is to be sold at
auction but court authority is unnecessary.
Back
to top -- View
Real Estate Listings
PRAIRIE HOUSE an early-twentieth-century-style
house with a long, low roof line, continuous row of
windows and an un-ornamented exterior. Designed to
satisfy the physical and psychological needs of the
inhabitants, it is unlike the traditional concept
of a house that is a box subdivided into smaller boxes
(rooms), each with some doors and windows. Architectural
development is credited to Frank Lloyd Wright.
Back
to top -- View
Real Estate Listings
PRECLOSING a rehearsal of the closing
whereby instruments are prepared and signed by some
or all parties to the contract. Used when closings
are expected to be complicated.
Back
to top -- View
Real Estate Listings
PREFABRICATED 1. constructed, as
building components, in a factory prior to being erected
or installed on the construction site. 2. constructed,
as a house, of prefabricated components.
Back
to top -- View
Real Estate Listings
PRELEASE to obtain lease commitments
in a building or complex prior to its being available
for occupancy.
Back
to top -- View
Real Estate Listings
PREMISES land and tenements; an
estate; the subject matter of a conveyance.
Back
to top -- View
Real Estate Listings
PREMIUM 1. the cost of an insurance
policy. 2. the value of a mortgage or bond in excess
of its face amount
Back
to top -- View
Real Estate Listings
PREPAID EXPENSES amounts that are
paid prior to the period they cover.
Back
to top -- View
Real Estate Listings
PREPAID INTEREST interest paid in
advance of the time it is earned.
Back
to top -- View
Real Estate Listings
PREPAYMENT CLAUSE a clause in a
mortgage that gives a mortgagor (borrower) the privilege
of paying the mortgage indebtedness before it becomes
due. Sometimes there is a penalty for prepayment,
with waiver of the interest that is not yet due.
Back
to top -- View
Real Estate Listings
PAYMENT PENALTY fees paid by borrowers
for the privilege of retiring a loan early.
Back
to top -- View
Real Estate Listings
PREPAYMENT PRIVILEGE the right of
a borrower to retire a loan before maturity.
Back
to top -- View
Real Estate Listings
PREPAYMENTS advance payments of
expenses such as insurance and taxes, often into an
escrow account.
Back
to top -- View
Real Estate Listings
PRESALE sale of proposed properties,
such as condominiums, before construction begins.
Back
to top -- View
Real Estate Listings
PRESCRIPTION acquiring rights through
adverse possession.
Back
to top -- View
Real Estate Listings
PRESENT VALUE OF ANNUITY the value
now of a level stream of income to be received each
period for a finite number of periods.
Back
to top -- View
Real Estate Listings
PRESENT VALUE OF ONE the value today
of an amount to be received in the future, based on
a compound interest rate.
Back
to top -- View
Real Estate Listings
PRETAX INCOME the amount earned
from a business or investment before deducting income
taxes.
Back
to top -- View
Real Estate Listings
PRICE-LEVEL-ADJUSTED MORTGAGE a
loan whose payment is adjusted according to the rate
of inflation. The payments are generally quite low,
typically 3 to 5% annually of the debt. This type
of mortgage is not commonly used in the U.S.
Back
to top -- View
Real Estate Listings
PRIMARY LEASE a lease between the
owner and a tenant whose interest, all or in part,
has been sublet.
Back
to top -- View
Real Estate Listings
PRIMARY METROPOLITAN STATISTICAL AREA (PMSA)
a classification of the U.S. Census Bureau applied
to cities with the following classifications. Within
a metropolitan area with a population of one million
or more, there may be areas that would qualify as
metropolitan areas on their own, yet are linked to
other cities in close proximity. These individual
areas are called Primary Metropolitan Statistical
Areas, while the metropolitan area containing these
PMSAs is called a Consolidated Metropolitan Statistical
Area (CMSA).
Back
to top -- View
Real Estate Listings
PRIMARY MORTGAGE MARKET that portion
of the credit market that originates mortgage loans,
including institutional lenders, such as savings and
loan associations and banks, and mortgage bankers
and brokers.
Back
to top -- View
Real Estate Listings
PRIME RATE the lowest commercial
interest rate charged by banks on short-term loans
to their most credit-worthy customers. The prime rate
is not the same as the long-term mortgage rate, though
it may influence long-term rates. Also, it is not
the same as the consumer loan rate that is charged
on personal property loans and credit cards. Mortgage
rates and consumer loan rates are generally higher
than the prime rate, but exceptions occur at times.
Back
to top -- View
Real Estate Listings
PEME TENANT in a shopping center
or office building, the tenant who occupies the most
space. Prime tenants are considered creditworthy and
attract customers or traffic to the center.
Back
to top -- View
Real Estate Listings
PRINCIPAL I - the one who owns or
will use property.
Back
to top -- View
Real Estate Listings
PRINCIPAL AND INTEREST PAYMENT (P&I)
a periodic payment, usually paid monthly, that includes
the interest charges for the period plus an amount
applied to amortization of the principal balance.
Commonly used with amortizing loans.
Back
to top -- View
Real Estate Listings
PRINCIPAL BROKER the licensed broker
responsible for the operations conducted by the brokerage
firm.
Back
to top -- View
Real Estate Listings
PRINCIPAL, INTEREST, TAXES and INSURANCE
PAYMENT (PITI) the periodic (typically monthly)
payment required by an amortizing loan that includes
escrow deposits. Each periodic payment includes a
principal and interest payment plus a contribution
to the escrow account set up by the lender to pay
insurance premiums and property taxes on the mortgaged
property.
Back
to top -- View
Real Estate Listings
PRINCIPAL MERIDIAN one of the prime
meridians used in the government rectangular survey
method of land description to locate range lines.
Back
to top -- View
Real Estate Listings
PRINCIPAL RESIDENCE the place one
lives in most of the time. May be a single-family
house, condominium, trailer, or houseboat. To defer
capital gain taxes on the profit from a home, the
home must be used as the taxpayer's principal residence.
Back
to top -- View
Real Estate Listings
PRIORITY legal precedence; having
preferred status. Generally, upon foreclosure, lenders
are repaid according to priority.
Back
to top -- View
Real Estate Listings
PRIVATE MORTGAGE INSURANCE default
insurance on conventional loans, provided by private
insurance companies.
Back
to top -- View
Real Estate Listings
PRIVATE OFFERING an investment or
business offered for sale to a small group of investors,
generally under exemptions to registration allowed
by the Securities and Exchange Commission and state
securities registration laws.
Back
to top -- View
Real Estate Listings
PROBATE OR PROVE to establish the
validity of the will of a deceased person.
Back
to top -- View
Real Estate Listings
PROCEEDS FROM RESALE same as resale
proceeds.
Back
to top -- View
Real Estate Listings
PROCURING CAUSE a legal term that
means the cause resulting in accomplishing a goal.
Used in real estate to determine whether a broker
is entitled to a commission.
Back
to top -- View
Real Estate Listings
PRO-FORMA STATEMENT (from Latin
pro forma, "according to form"). Financial
statements showing what is expected to occur.
Back
to top -- View
Real Estate Listings
PROGRESS PAYMENTS in construction,
loan payments issued to the builder as building is
completed.
Back
to top -- View
Real Estate Listings
PROJECTION PERIOD the time duration
for estimating future cash flows and the resale proceeds
from a proposed real estate investment.
Back
to top -- View
Real Estate Listings
PROMISSORY NOTE a promise to pay
a specified sum to a specified person under specified
terms.
Back
to top -- View
Real Estate Listings
PROPERTY 1. the rights that one
individual has in lands or goods to the exclusion
of all others; rights gained from the ownership of
wealth.
Back
to top -- View
Real Estate Listings
PROPERTY MANAGEMENT the operation
of property as a business, including rental, rent
collection, maintenance, etc.
Back
to top -- View
Real Estate Listings
PROPERTY REPORT required by the
Interstate Land S* Act for the sale of subdivisions
of 50 lots or more, if the subdivisions are not otherwise
exempt. Filed with HUD's Office of Interstate Land
Sales Registration (OILSR).
Back
to top -- View
Real Estate Listings
PROPERTY RESIDUAL TECHNIQUE in appraisal,
a method for estimating the value of property based
on estimated future income and the reversionary value
of the building and land.
Back
to top -- View
Real Estate Listings
PROPERTY TAX a government levy based
on the market value of privately owned property. Sometimes
referred to as ad valorem tax or real estate tax.
Back
to top -- View
Real Estate Listings
PROPRIETARY LEASE in a cooperative
apartment building, the lease a corporation provides
to the stockholders which allows them to use a certain
apartment unit under the conditions specified.
Back
to top -- View
Real Estate Listings
PRORATE to allocate between seller
and buyer their proportionate share of an obligation
paid or due; for example, to prorate real property
taxes or insurance.
Back
to top -- View
Real Estate Listings
PROSPECT a person considered likely
to buy. A prospective purchaser.
Back
to top -- View
Real Estate Listings
PROSPECTUS a printed descriptive
statement about a business or investment that is for
sale, to invite the interest of prospective investors.
Back
to top -- View
Real Estate Listings
PROXY a person who represents another,
particularly in some meeting. Also, the document giving
to another the authority to represent.
Back
to top -- View
Real Estate Listings
PUBLIC HOUSING government-owned
housing units made available to low-income individuals
and families at no cost or for nominal rental rates.
Back
to top -- View
Real Estate Listings
|
