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P

PACKAGE MORTGAGE - A mortgage encumbering the real property and specified personal property contained therein.

PARTIAL GUARANTEE - A guarantee of only a portion of a loan such as VA guaranteed loans.

PARTITION - The legal separation of two or more co-tenants' interests in a property, either physical or by court-ordered sale.

PERCENTAGE LEASE - A lease in which the lessor collects a stated portion of the tenant's business income in addition to or instead of a base rent.

PERIODIC ESTATE - PERIODIC TENANCY - A leasehold that recurs for stated periods of time until terminated by notice.

PERSONAL PROPERTY - Not real property. If tangible, it is also movable because it is not attached to land.

PGI - Potential Gross Income - same as GSI.

PHYSICAL DEPRECIATION - PHYSICAL DETERIORATION - A reduction in value due to a decline in the condition of the property.

PITIM - Principal, interest, taxes, insurance and mortgage insurance. A loan payment plan in which the lender also collects additional money to assure the availability of funds to pay taxes and insurance when due.

PITT - Acronym summarizing the four unities of joint tenancy - Possession, Interest, Time and Title.

Plat -A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

PLAT BOOK - The public record of official plats of the subdivisions located in the county.

PLAT MAP - The map of a subdivision that shows the layout and dimensions of the parcels in the subdivision along with each lot and block number.

POINT OF BEGINNING - The starting point on the boundary of a property from which the surveying directions are derived in a metes and bounds description.

Points -Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $25,000, one point is $250. Points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them. An additional charge to obtain a loan to adjust for interest rate fluctuations (and yield) in the marketplace without changing the note rate. Each point is one percent of the loan amount.

POLICE POWER - The power of the government to regulate private sector activity.

POSTER - The required display of a government Fair Housing Poster in broker's offices.

POWER OF SALE - A clause in a security instrument that allows the lender to sell the secured property to satisfy the defaulted debt without court action.

Prepayment -Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. The Federal Housing Administration does not permit such restrictions in FHA insured mortgages.

PREPAYMENT CLAUSE - A clause in a security instrument addressing the possibility of early payoff of the debt.

Prepayment Penalty: A penalty for prepaying a loan prior to the payment schedule of the note.

PRIMA FACIE - Evidence apparent at first look. Absence of the required Fair Housing Poster constitutes prima facie evidence of discrimination.

Principal
The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.

PRIORITY - The order of claims against a property.

PRIOR APPROPRIATION - A doctrine of water rights allocation in which the state allows water rights to beneficial users on a ""first come, first served"" basis.

PRIVATE MORTGAGE INSURANCE (PMI) - An insurance policy that partially protects a conventional lender against defaults by a borrower.

PROCURING CAUSE - The reason behind an event's occurrence. Typically used in reference to the individual who found the ready, willing and able buyer for a listed property.

PROFIT - Rights of removal of some product of the property such as fruits, crops, oil, minerals without ownership rights in the land.

PROGRESSION - An appraisal principle that finds an enhancement to a property's value because of the superior quality of surrounding uses.

PROPERTY MANAGEMENT - The service of leasing, managing and maintaining an investment property for an owner. PITI (principal interest taxes and insurance): This is the amount of the monthly payment necessary to cover the principal, interest, taxes, and insurance.

PROPRIETARY LEASE - The lease between a cooperative housing corporation and a tenant shareholder.

PROTECTION PERIOD CLAUSE - A clause in a listing that protects a broker's commission for a stated time if a prospect purchases the property after the listing expires.

PUBLIC GRANT - A transfer of land by government body to a private party.

PUD - Planned Unit Development or Private Unit Development

PUFFING - A comment that enhances or exaggerates the quality of property but is expressed as an opinion, not as fact.

Purchase Agreement -See (agreement of sale). 

 PURCHASE MONEY MORTGAGE - A mortgage taken by the seller instead of cash as part of the price.

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