Vocab: P

Question 1

Panic Selling

Answer 1

As with blockbusting, the prohibited discriminatory pracitce of a real estate licensee inducing a property owner to list property for sale by suggesting that a change in neighborhood demographics will cause a loss in property values.

Question 2

parties

Answer 2

Those persons taking part in a transaction as principals such as the seller, buyer, or lender in a real estate transaction.

Question 3

passive income

Answer 3

Profits and losses from rental real estate, operations and sales, and from non owner operated businesses designated for income tax reporting purposes.

Question 4

patent

Answer 4

conveyance of title to government land

Question 5

percentage lease

Answer 5

a commercial lease agreement for a retail operation that sets the total amont of the rent the tenant will pay as a percentage fo the tenants gross sales.

Question 6

personal property

Answer 6

Moveable property which is not classified as real estate, such as trade fixtures and furnishings

Question 7

planned unit development (PUD)

Answer 7

A term sometimes used to describe a planned development. A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.

Question 8

Plottage

Answer 8

A term used in appraising to designate the increased value of two or more contiguous lots when they are joined under single ownership and available for use as a larger single lot. Also called ASSEMBLAGE

Question 9

Points

Answer 9

a fee charged by a mortgage lender as prepaid interest which in turn reduces the note rate on the mortgage, with a point equaling 1% of the amount of the mortgage.

Question 10

Police Power

Answer 10

The constitutional source of the state or local governments authority to act.

Question 11

Power of Attorney

Answer 11

A temporary authority granted to an individual to perform activities during a period of the owners incapacity or travel.

Question 12

Preliminary Title Report (prelim)

Answer 12

A report constituting a revocable offer by a title insurer to issue a policy of title insurance used by a buyer and escrow to initially establish the current vesting and encumbrances attached to a title of a property as reflected by public record.

Question 13

Prescriptive rights

Answer 13

The right to use water established by appropriating nonsurplus water openly and adversely for an uninterrupted period of five years without documentation of a legal right.

Question 14

Prescriptive easement

Answer 14

The right to use anothers property established by the adverse use of the property for a period in excess of five years without a claim ownership.

Question 15

Principal

Answer 15

A person, an individual or an entity, acting as a buyer or seller, represented by a broker and their agents.

Question 16

Private Mortgage Insurance (PMI)

Answer 16

Default mortgage insurance coverage provided by private insurers for conventional loans with loan to value ratios higher than 80%

Question 17

pro rata

Answer 17

proportion; according to a percentage or proportion of a whole such as annual property taxes based on part of a month or year.

Question 18

probate sale

Answer 18

a court managed sale of a property during the probate process.

Question 19

procurring cause

Answer 19

That cause originating from a series of events that without a break in continuity results in an agent producing a final buyer under an agency employment; the real estate agent who first procures a ready, willing and able for the agreed upon price and terms entitling them to a fee.

Question 20

Promissory note

Answer 20

A document given as evidence of a debt owed by one person to another.

Question 21

property

Answer 21

Everything capable of being owned and acquired lawfully. Classified into two groups, personal and real property. Right to use, possess, enjoy and dispose of a thing in every legal way and to exclude everyone from interfering with these rights.

Question 22

property profile

Answer 22

A report from a title company providing information about a propertys ownership ecumbrances, use restrictions, and comparable sales data.

Question 23

Proposition 13

Answer 23

A 1979 California state constitutional amendment restricting property tax increases in years following acquisition by limiting annual increases in assessed value of real estate to no more than 2%, or the rate of consumer inflation if less.

Question 24

proration

Answer 24

Provisions entitling the seller to a credit for the portion fo prepaid sums which have not accrued on obligations a buyer assumes on the day escrow closes, or entitling the buyer to a credit for amounts assumed which accrued unpaid through the day prior to the close of escrow.

Question 25

Puffing

Answer 25

An exaggeration of property feature or benefit which if reasonably believed to be fact, can rise to misrepresentation and fraud.

Question 26

Purchase agreement

Answer 26

The primary document used as a checklist to negotiate a real estate sales transaction between a buyer and a seller.