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Legal Term |
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-P-
Panel
Heating
A
means of giving off radiant heat using pipes
or ducts built into the walls, floors or ceiling.
Panic
Selling
The
illegal practice of igniting fear among property
owners in a particular neighborhood or area
by inducing an abnormally high turnover or
panic selling of homes at prices below market
value by exploiting the prejudices of home
owners in neighborhoods where the ethnic make-up
is or appears to be on the verge of changing.
Also called Blockbusting.
Parquet
Floor
A
type of hardwood flooring laid in squares
or patterns instead of in strips.
Penthouse
A
luxury housing unit located on the top floor
of a high-rise building.
Percolation
Test
A
soil test of preformed to determine if the
soil will absorb and drain water adequately
for the disposal of sewage through a septic
system.
Perimeter
Heating
A
heating system such as baseboard heating where
the heat registers are located along the outside
walls of a room and usually directly under
windows.
Periodic Payment Cap
For
an Adjustable Rate Mortgage (ARM), a limit
on the amount that payments can increase or
decrease during any one adjustment period.
Periodic Rate Cap
For
an Adjustable Rate Mortgage (ARM), a limit
on the amount that the interest rate can increase
or decrease during any one adjustment period,
regardless of how high or low the index might
be.
Personal
Liability
The
responsibility that an individual has for
a debt.
Personal Property
Any
property that is not real property. Real property
is land and everything attached or erected
on it.
PITI
The
components of a mortgage payment that combines
Principal, Interest, Taxes, and Insurance.
Principal refers to the part of the monthly
payment that reduces the remaining balance
of the mortgage. Interest is the fee charged
for borrowing money. Taxes and insurance refer
to the amounts that are paid into an escrow
account each month for property taxes and
mortgage and hazard insurance.
PMI
Private
Mortgage Insurance. A type of mortgage insurance
available to conventional lenders on the first,
high risk portion of a loan guarantying payment.
Point
A
one-time charge by the lender for originating
a loan to increase the yield of a mortgage
loan above the contract rate to the market
rate so that it is competitive with other
investments and is equal to the difference
between the stated principal amount on the
note and the lesser amount loaned. A point
is 1 percent of the amount of the mortgage.
Power of Attorney
A
legal document that authorizes another person
to act on one's behalf. A power of attorney
can grant complete authority or can be limited
to specified acts on his or her behalf for
certain periods of time.
Power
of Sale
The
power that an instrument such as a trust deed
grants to a trustee or mortgagee to sell the
secured property without judicial proceedings
if a borrower defaults in payment of the promissory
note or otherwise breaches the terms of the
mortgage or trust deed.
Preapproval
A
lending practice where a borrower can demonstrate
to a seller and broker that they can qualify
for an specific loan amount which permits
a prospective buyers to shop with condidence
that a loan will be approved.
Preforeclosure Sale
A
procedure in which the investor allows a mortgagor
to avoid foreclosure by selling the property
for less than the amount that is owed to the
investor.
Prepayment
Any
amount paid to reduce the principal balance
of a loan before the due date. Payment in
full on a mortgage that may result from a
sale of the property, the owner's decision
to pay the loan off in full, or a foreclosure.
In all cases, prepayment means payment occurs
before the loan has been fully amortized.
Prepayment Penalty
A
fee that may be charged to a borrower who
pays off a loan prior to its maturity.
Prequalification
A
preliminary assessment of a buyer's ability
to secure a loan, based on a specific set
of lending guidelines and buyer representations
made which is not a guarantee or commitment
by a lender to extend credit.
Prime Rate
The
lowest commercial interest rate charged by
banks on short-term loans to their most creditworthy
customers. Changes in the prime rate influence
changes in other rates, including mortgage
interest rates.
Principal
1.
The amount borrowed or remaining unpaid. 2.
The part of the monthly payment that reduces
the remaining balance of a mortgage. 3. A
main party in a real estate transaction such
as a buyer, seller, owner, lessor or borrower.
Principal Balance
The
outstanding balance of principal on a mortgage.
The principal balance does not include interest
or any other charges.
Principal, Interest, Taxes, And Insurance
(PITI)
The
four components of a mortgage payment. Principal
refers to the part of the monthly payment
that reduces the remaining balance of the
mortgage. Interest is the fee charged for
borrowing money. Taxes and insurance refer
to the amounts that are paid into an escrow
account each month for property taxes and
mortgage and hazard insurance.
Private Mortgage Insurance (PMI)
Mortgage
insurance that is provided by a private mortgage
insurance company to protect lenders against
loss if a borrower defaults. Most lenders
generally require MI for a loan with a loan-to-value
(LTV) percentage in excess of 80 percent.
Promissory Note
A
written promise to repay a specified amount
over a specified period of time and where
the note is the evidence of the debt and the
borrower takes on liability for its repayment
and the mortgage is the security for the debt.
Public Auction
A
planned meeting in an announced location to
sell property to repay a mortgage that is
in default.
PUD (Planned Unit Development)
A
coordinated, real estate development where
common areas are shared and maintained by
an owner's association or other entity for
the benefit and use of the individual PUD
unit owners.
Pueblo
(or Adobe House)
An
early twentieth-century house that is made
of adobe brick or other material made to look
like adobe brick and which has the unique
characteristic of projecting roof beams.
Purchase and Sale Agreement
A
written contract signed by the buyer and seller
stating the terms and conditions under which
a property will be sold.
The
definitions of Real Estate Definitions found
on 10Realty.com are for general information
only. All information is subject to change
and should be independently verified. 10Realty.com
makes no representations or warranties of
any nature with regard to the information
found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this
information. (Real Estate Terms, Investment
Terms, Banking Terms explained, definitions,
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