P/Q Terms Flashcards
package mortgage
A mortgage that includes personal property as well as real property.
parol evidence rule
The rule that bars verbal (parol) evidence from being used to show that a contract means other than what it says. Parol evidence can be used to clarify ambiguities or to show fraud.
percentage lease
A lease in which the rent is a percentage of the gross income.
per stirpes
An inheritance by right of representation. Children share equally in the share their deceased parent would have received. This is different from per capita distribution, where all heirs obtain the same amount.
penny
A measure for nails shown as the letter d. The larger the penny value, the larger the nail.
Pearson VUE
An independent examination testing service.
payback period
The time it will take for the income generated by a property to return the investment (down payment).
patent defect
A defect that is obvious from a visual inspection.
patent
The original conveyance of land from the government.
partially amortized loan
An amortized loan that must be paid off with a balloon payment before amortization is complete.
pass-through certificate
A certificate sold to investors backed by a pool of Ginnie Mae insured mortgages. The principal and interest paid by borrowers is passed through to the certificate owners.
passive loss
A paper loss from depreciation.
party wall
A common wall on the property line maintained by both owners.
partnership
An agreement between two or more persons to unite for business purposes and to share profits.
partition
A legal action to break a joint ownership.
participation loan
A loan agreement under which the lender receives a share of the revenue or profits in addition to the interest. The lender takes an equity share as a limited partner or shareholder as partial consideration for the loan.
partition in kind
The splitting of property into separate parcels to dissolve a joint tenancy or tenancy in common.
percolation
The ability of soil to absorb water. Percolation tests are required in many areas before a permit is issued for a structure requiring a septic system.
perfect escrow
An escrow in which all signed documents and funds have been deposited with the escrow and the transaction is ready for closing.
plot plan
The layout of a lot showing placement of the structure in relationship to lot lines.
pledge
The depositing of personal property as security for a debt with another while retaining title.
plate
A horizontal board (2” x 4”) to which studs are nailed. There is both a top plate and a bottom plate, (called a sole plate).
plat
A map or plan of a subdivision showing individual lots.
planning commission
A group of appointed officials responsible for planning and zoning.
planned unit development (PUD)
A development with individual lot
ownership and shared ownership of common areas such as recreational areas; also called a planned development project.
performance bond
Bond that guarantees completion of a contract should the contractor default on performance.
PITI
Denotes that a payment includes principal, interest, taxes, and insurance.
pitch
The slope of a roof; usually expressed in inches per foot. A 5-12 pitch drops five inches in each horizontal foot. Generally, roofs with steeper pitches have longer lives than more gently sloped roofs.
physical deterioration
Depreciation caused by age and use.
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA)
An act that prohibits public benefits, including professional licensing, to illegal aliens.
personal property
Property that is not classified as real property.
periodic tenancy Generally regarded as employees of the employing salesperson.
A rental from period to period that renews itself automatically unless the lessor or lessee gives notice.
personal assistant
A licensed or unlicensed party who works for a real estate salesperson. Generally regarded as employees of the employing salesperson.
plottage
The increase in value from the process of assemblage (joining several adjacent parcels to form a larger parcel).
pocket listing
A listing not advertised or made available to other agents.
point
A fee charged by the lender that amounts to advance interest, making up for an interest rate the lender considers too low. Each point paid is 1% of the loan amount.
primary mortgage market
Characterizes the actual granting of loans from the lender to the borrower.
primary financing
First mortgages and trust deeds.
price-fixing
Illegal practice of conspiring to set fixed prices for goods or services.
prescription
Obtaining an easement by open,hostile, and continuous use for a statutory period of time.
prepayment penalty
A penalty for prepaying a loan before the payment schedule of the note.
point of beginning (POB)
police power The power of the state to adopt and enforce laws to promote order, safety, health, morals, and general welfare. No compensation is given for financial losses resulting from the exercise of police power. It cannot be delegated to a nongovernmental body. Examples include zoning, health code, and building code enforcement.
ponding Floodwater accumulation in depressions.
portfolio income The passive income received from investments rather than from a salary or business.
portfolio loan A loan held by the lender as an investment rather than one made for resale on the secondary mortgage market.
power of attorney A written agency agreement given by a principals to an attorney-in-fact to act on their behalf.
The point of beginning in a metes-and-bounds description.
preliminary title report
A report indicating the present condition of the title and indicating the conditions upon which title insurance will be issued.
predatory lending
Abusive lending practices to strip an owner of home equity.
point of beginning (POB)
The point of beginning in a metes-and-bounds description.
police power
The power of the state to adopt and enforce laws to promote order, safety, health, morals, and general welfare. No compensation is given for financial losses resulting from the exercise of police power. It cannot be delegated to a nongovernmental body. Examples include zoning, health code, and building code enforcement.
ponding
Floodwater accumulation in depressions.
portfolio income
The passive income received from investments rather than from a salary or business.
portfolio loan
A loan held by the lender as an investment rather than one made for resale on the secondary mortgage market.
power of attorney
A written agency agreement given by a principals to an attorney-in-fact to act on their behalf.
predatory lending
Abusive lending practices to strip an owner of home equity.
preliminary title report
A report indicating the present condition of the title and indicating the conditions upon which title insurance will be issued. prepayment penalty
pyramiding
Refinancing or selling property that has increased in value to buy additional or larger property.
purchase money mortgage (PMM)
(1) A mortgage given by the buyer to the seller to finance the purchase. The seller is financing the buyer. Actual cash does not change hands.
(2) A loan given to a buyer to finance a property purchase.
purchase sale-back
The investor buys property and sells or leases it to the original owner. Normally, a leaseback is used by an owner to free capital for operational purposes. A purchase sale- back is sometimes used in place of a mortgage to provide greater security for the lender. Also called a sale-leaseback.
pur autre vie
A life estate for the life of a person other than the life tenant.
punitive damages
Exemplary damages beyond actual damages awarded for a wrongful, willful act for the purpose of punishing the wrongdoer.
puffing
A statement of opinion given in a sale; not a warranty.
Protecting Tenants at Foreclosure Act
Provides for leases surviving foreclosures, as well as a notice period.
proration
To apportion based on actual time to the date of closing, as with taxes, insurance, and rents.
proprietary lease
A lease by a cooperative to a shareholder providing a right to occupy a unit.
property management
Real estate activity focused on leasing and maintenance of property.
progression
The increase in value of a less expensive home resulting from more expensive homes being built around it.
