Friday, September 30, 2011

Real Estate Glossary - P

Parcel : An officially described piece of land.

Partition : An interior wall.

Partnership : There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an in

Passive loss : A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.

Passive solar system : A system that supplies solar heat without the use of electric fans or pumps.

Patent defect : A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.

Payment cap : A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.

Percolation test : A test used to determine the ability of soil to accommodate a septic system.

Per-diem interest : Interest charged or accrued daily.

Panel : A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.

Paneling : Strips of wood or wood material applied as a finish to a wall.

Parking strip : The strip of grass between the sidewalk and the street in front of a house.

Partition : Any kind of structure dividing one room or space from another.

Patio : An interior courtyard or a paved backyard area.

Perennial : Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.

Pergola : An arbor with an open roof of rafters supported by posts or columns.

Personal property : Any moveable property in a house such as furniture or appliances.

Pest-control inspection : A common pest-control inspection is a termite inspection, which is required in some states, such as California.

Pier : A rectangular masonry support column.

PITI (Principal, Interest, Taxes, Insurance) : When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.

Planned communities : The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.

Planned-unit development : Residents own the home and the land, and share the use and financial responsibility for common areas.

Plaster : A labor-intensive and more costly wall finish.

Pocket door : A sliding door that retreats into the wall when opened.

Point : Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.

Porch : The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.

Porte cochere : A porch-like roof extending over a driveway.

Portfolio lender : A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.

Portico : A porch supported by a row of columns.

Possession : When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.

Power of attorney : A document that authorizes an individual to act on behalf of someone else.

Pre-approval letter : A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.

Prepaid expenses : The costs for taxes, insurance and assessments paid before the due date.

Prepaid interest : Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.

Prepayment penalty : Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.

Prequalification : Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

Pre-sold home : Homes that are sold before they are built.

Pressure relief valve : A safety vent that relieves excess pressure in a water heater.

Price range : The range of how much a buyer is willing to pay for a home.

Primer : The initial coat of paint that is applied before the final topcoat.

Principal : The amount of money that the borrower owes on a mortgage.

Principle of conformity : The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.

Principle of progression : An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.

Principle of regression : An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.

Privacy fence : A structure erected between two pieces of property.

Private mortgage insurance (PMI) : A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.

Probate sale : A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.

Production home : Homes that are mass-produced by one builder in a project.

Programming : A written summation by an architect of a project's design objectives, constraints and criteria.

Project budget : A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.

Property line : The official dividing line between properties.

Property report : A disclosure issued by the state when a time-share project is located or sold.

Property tax : Property taxes are calculated at about 1.5 percent of the current market value.

Property tax deduction : The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.

Property value : The value of a piece of property is based on the price a buyer will pay at a certain time.

Proration : Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.

Punch list : Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.

Purchase agreement : A document which details the purchase price and conditions of the transaction.

Purchase-money mortgage : A mortgage that a borrower obtains to acquire a property.

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