P words

Question 1

Package Loan

Answer 1

A type of loan used in home financing covering real property, improvements, and
movable equipment/appliances.

Question 2

Partition

Answer 2

A division of real or personal property or the proceeds therefrom among co‐owners.

Question 3

Percentage Lease

Answer 3

Lease on the property, the rental for which is determined by amount of business
done by the lessee; usually a percentage of gross receipts from the business with provisions for a
minimum rental.

Question 4

Periodic Tenancy

Answer 4

A lease that automatically renews for successive periods unless terminated by either
party; also called estate from year to year.

Question 5

Personal Property

Answer 5

All property that is not considered to be real property. That which is movable (not
attached to land).

Question 6

Physical Obsolescence

Answer 6

The loss in value due to the actual wearing out of the improvements.

Question 7

Planned Development

Answer 7

A subdivision consisting of separately owned parcels of land together with
membership in an association which owns common area. Sometimes the owner of separate interests
also have a undivided interest in the common area.

Question 8

Plot Plan

Answer 8

A scaled plan diagram showing the buildings, utility runs, and equipment layout, the position
of roads, and other constructions of an existing or proposed project site.

Question 9

Police Power

Answer 9

The right of any political body to enact laws and enforce them, for the order, safety,
health, morals and general welfare of the public.

Question 10

Positive Easement

Answer 10

An easement entitling its holder to do something affecting the land of another in
such a way that the holder would be guilty of trespass or nuisance were it not for the easement.

Question 11

Possessory Interest

Answer 11

The right to control a property and to exclude other from the present, exercised
by one who is not necessarily the owner.

Question 12

Power of Attorney

Answer 12

The authority to act for another person in specified or all legal or financial matters.

Question 13

Power of Sale

Answer 13

The power of a mortgagee or trustee when the instrument so provides 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 deed of trust.

Question 14

Pre‐Approval

Answer 14

A step above pre‐qualification, it involves verifying a purchaser’s credit, down payment,
and employment history.

Question 15

Prepayment Penalty

Answer 15

The charge payable to a lender by a borrower under the terms of the loan
agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity.

Question 16

Pre‐Qualification

Answer 16

A lender gives a purchaser a letter stating that he prequalifies for a loan.

Question 17

Present Interest

Answer 17

The unrestricted right to the immediate use, possession, or enjoyment of property or
the income therefrom.

Question 18

Primary Mortgage Market

Answer 18

The marketplace whereby loans are originated.

Question 19

Principal

Answer 19

The employer of an agent; one of the main parties in a real estate transaction, such as a
buyer, borrower, seller, or lessor.

Question 20

Principle of Anticipation

Answer 20

Affirms that value is created by anticipated benefits to be derived in the
future.

Question 21

Principle of Change

Answer 21

Holds that it is the future, not the past, which is of prime importance in estimating
value. Change is largely the result of cause and effect.

Question 22

Principle of Conformity

Answer 22

Holds that the maximum of value is realized when a reasonable degree of
homogeneity of improvements is present. Use conformity is desirable, creating and maintaining higher
values.

Question 23

Principle of Contribution

Answer 23

A component part of a property is valued in proportion to its contribution to
the value of the whole. Holds that maximum values are achiever when the improvements on a site
produce the highest (net) return, commensurate with the investment.

Question 24

Principle of Substitution

Answer 24

Affirms that the maximum value of a property tends to be set by the cost of
acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered
in making the substitution.

Question 25

Principle of Supply and Demand

Answer 25

In appraising, a valuation principle stating that market value is
affected by the intersection of supply and demand forces in the market as of the appraisal date.

Question 26

Private Mortgage Insurance

Answer 26

– Mortgage guaranty insurance available to conventional lenders on the
first, high risk portion of a loan (PMI).

Question 27

Privity

Answer 27

Mutual relationship to the same rights of property, contractual relationship.

Question 28

Privity of Contract

Answer 28

The relationship which exists between the persons who are parties to a contract.

Question 29

Privity of Estate

Answer 29

A mutual or successive right or interest in the same real property

Question 30

Probate

Answer 30

The official proving of a will. The legal process wherein the estate of a decedent is
administered.

Question 31

Procedural Law

Answer 31

Comprises the rules by which a court hears and determines what happens in civil
lawsuit, criminal or administrative proceedings.

Question 32

Procuring Cause

Answer 32

The cause originating from a series of events that without break in continuity, results
in the prime object of an agent’s employment producing a final buyer; the real estate agent who first
procures a ready, willing, and able buyer for the agreed upon price and terms and is entitled to the
commission.

Question 33

Promissory Estoppel

Answer 33

In the law of contracts, the doctrine that provides that if a party changes his or
her position substantially either by acting or forbearing from acting in reliance upon a gratuitous
promise, then that party can enforce the promise although the essential elements of a contract are not
present.

Question 34

Promissory Note

Answer 34

Following a loan commitment from the lender, the borrower signs a note, promising
to repay the loan under stipulated terms. The promissory note establishes personal liability for its
payment. The evidence of the debt.

Question 35

Property Management

Answer 35

A branch of the real estate business involving the marketing, operation,
maintenance and day‐to‐day financing of rental properties.

Question 36

Property Management Report

Answer 36

A periodic (usually monthly) account of all funds received and
disbursed; contains detailed information of all receipts and expenditures for the period covered (and the
year‐to‐date) and relates each item to the operating budget for the period.

Question 37

Property Manager

Answer 37

A person who manages properties for an owner as the owner’s agent.

Question 38

Proration

Answer 38

The division of certain settlement costs between a buyer and seller.

Question 39

Proration of Taxes

Answer 39

To divide or prorate the taxes equally or proportionately to time of use, usually
between seller and buyer.

Question 40

Punitive Damages

Answer 40

Damages simply for the purpose of punishment.