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Package loan – A type of mortgage used in home financing that is inclusive and covers the real property and the improvements as well as any movable mechanical or electrical equipment.

Panel heating – A means of giving off radiant heat using pipes or ducts built into the walls, floor or ceiling.

Panic peddling – See Panic selling.

Panic selling – The illegal practice of inducing fear among property owners in a particular neighborhood or area by indicating that an abnormally-high turnover rate might occur as the result of the introduction of a nonconforming use or user into the area. See Blockbusting.

Par value – A nominal or named value indicated by the market.

Parallels – The east-west lines of survey that are 6 miles apart.

Paramount title – A title which is of better-quality and overriding all others.

Parapet – A low protective wall or barrier built around the edge of a balcony, roof or bridge.

Parcel – Any area of land contained within a single description.

Parcel of real estate – A particular piece of land including its improvements.

Parity equality – A concept that refers to the equivalence between farmers’ current purchasing power and their purchasing power at a selected base period, maintained by government support of commodity prices.

Parking lot – A parcel of real estate used to store vehicles where about 300 square feet per vehicles is usually required for each parking space and an aisle.

Parking ratio – The number of parking spaces per 1,000 square feet of gross rentable area.

Parol evidence – The evidence that is presented orally or verbally rather than in writing.

Parol evidence rule – A rule of evidence providing that a written agreement is the final expression of the agreement between the parties and cannot to be varied from nor contradicted by previous or simultaneous oral or written negotiations.

Parquet floor – The hardwood flooring laid in squares or patterns instead of in strips.

Partial reconveyance deed – A deed used to reconvey a portion of land encumbered by a blanket mortgage or trust deed.

Partial release clause – A clause in a mortgage or trust deed that releases part of the property from the mortgage or trust deed upon partial payment of the debt.

Partial taking – An acquisition by condemnation which acquired only part of the property or some of the property rights as opposed to all.

Partially amortized loan – A combination of an amortized loan and a straight term loan.

Participation loan – A sharing of an interest in an income property by a lender in addition to the base interest collected on a mortgage loan, a percentage of gross income is required, sometimes predicated on certain conditions being fulfilled such as a minimum occupancy rate or a percentage of net income after expenses of debt service and taxes. Also called Equity participation or Co-venture loan.

Partition action – A legal proceeding which divides real or personal property among various co-owners to separate their joint ownership.

Partnership – A formal voluntary business arrangement in which two or more parties unite to share in the profits and risks of a continuing business venture and which by law is considered to be a group of individuals and not a single entity. See Limited partnership.

Party or Parties – The entities taking part in a transaction as a principal such as seller, buyer or lender in a real estate transaction.

Party wall – A wall erected on or at the boundary line between two adjoining parcels and which can also be a perimeter wall of two adjoining houses which gives support to both under a recorded agreement and used or intended to be used for the common benefit of both owners in the construction or maintenance of the improvements on their respective lots.

Passive activity income – The income from real estate or another business in which an owner is not actively involved or participate in on a day-to-day basis.

Pass-through securities program – A GNMA mortgage-backed security program wherein the principal and interest on the mortgages purchased by the investors are passed through to them as they are collected.

Patent – A conveyance of title to land by the Federal or State Government.

Patent deed – The first transfer of title from the federal or state government to a private party.

Payback period – The period of time necessary for the cash flow from a project to equal the amount of money invested.

Payment adjustment date –The date the borrower’s monthly principal and interest payment may change in an adjustable rate mortgage.

Payment cap –The maximum amount of increase that is at the borrower’s option that can be made to the interest in an adjustable rate mortgage on the payment adjustment date, if the increase called for, exceeds the payment cap amount and which may result in negative amortization.

Payment rate –The rate at which the borrower repays an adjustable rate loan that reflects any buy downs or payment caps.

Payoff statement – The document signed by a lender indicating the amount required to pay a loan balance in full and satisfy the debt; used in the settlement process to protect both the seller’s and the buyer’s interests. Also called a Reduction certificate.

Pedestrian count – A determination used in appraising a business property of the number of persons walking past the front of a business location over a determined period of time.

Pedestrian traffic count – See Pedestrian count.

Penalty – An extra payment or charge required from a borrower for not complying with the terms of an original loan agreement that isusually charged for making a regular payment late or for paying off the loan before it is due. See Late charge and Prepayment penalty.

Pennsylvania farmhouse – A characteristically informal architectural style that employs a residential Colonial type of design with stone walls which are sometimes filled with plaster and whitewashed,.

Penthouse – A luxury housing unit located on the top floor of a high-rise building.

Per capita – A measurement based according to the number of individuals or on being by the head.

Per Se – As such, by itself, in itself, taken alone or unconnected with other matters.

Per stirpes – A legal method of distributing a deceased person’s estate to his or her linear blood line descendants.

Percentage – A given part or an amount of every hundred.

Percentage lease – A lease in which calls for a minimum rental payment and which often has a provision to collect a percentage of the sales income from the lessee’s business.

Percolation – The ability of the soil to absorb water.

Percolation test – A test of soil preformed to determine if the soil will absorb and drain water adequately for the disposal of sewage through a septic system.

Percolation water – A landowner’s subsurface water which may be used.

Perfecting title – The removing of a cloud or claim against a real estate title.

Performance – The completion of the duties and obligations in a contract as required by law.

Performance bond – A bond used to guarantee the completion of an endeavor such as building or a road in accordance with the contract.

Perimeter – The distance around the outside of an object or geometric figure.

Perimeter heating – A heating system such as baseboard heating where the heat registers are located along the outside walls of a room and especially directly underneith the windows.

Periodic estate – See Estate from period to period.

Periodic interest rate cap – The limits that increase or decrease the note rate in an adjustable rate mortgage at each rate adjustment period thus limiting the increase or decrease of the borrower’s payment at the time of adjustment.

Periodic tenancy – See Estate from period to period.

Permanent lender – A party that makes permanent loans. See Construction lender.

Permanent loan – The long-term financing done through a mortgage or trust deed.

Permit – A document issued by a regulatory authority of a government that allows the bearer to take some specific action such as an occupancy permit or a building permit.

Perpetual easement – An easement with no time limits.

Perpetuity – An existence without any time limits which would theoretically be forever.

Person – An entity having legal responsibility.

Personal liability – The responsibility that an individual has for a debt which with most real estate loans are recourse where the lender can look to the property and to the borrower for repayment. Contrast Nonrecourse, Exculpatory clause.

Personal property – Any movable property which has not been designated by law as real property such as money, goods, evidences of debt, rights of action, furniture, automobiles.

Personal representative – An executor, guardian or administrator who represents another party under contract or judicial appointment.

Personal residence – Any home in which an owner of multiple residences may reside. See Primary residence and Domicile.

Personalty – All property other than realty and is also known as chattels.

Phase I environmental site assessment – A preliminary examination of a site necessary to support a claim of being an innocent purchaser to determine the potential for contamination and which includes a review of present and historical land uses and preliminary tests of places that are suspect.

Phase II – A necessary field investigation when results of a Phase I are positive to confirm the presence of contamination and estimate the cost of remediation.

Phase III – The act of remediation or clearing up a contaminated site.

Physical deterioration – An impairment of condition and a loss in value inherent in property brought about by wear and tear, disintegration, use and actions of the elements which is either curable or incurable.

Physical life – The estimated period during which a building can stand, as distinguished from its economic life meaning the period in which it can produce income. See Economic life.

Pi – A constant that relates the circumference of a circle to its diameter. The ratio is equal to 3.1416.

Pi constant – The principal and interest constant used to repay an amortized loan.

Pier – A column of masonry, used to support other structural members.

Pitch – The incline of usually in real estate a roof.

PITI – A payment that combines Principal, Interest, Taxes, and Insurance.See Principal, Interest, Taxes and Insurance.

Plaintiff – The one who sues or originates an action at law and who is also known as the complainant.

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.

Planned Unit Development, PUD – An area which is designed and provides for intensive use of land often through a combination of private and common areas with arrangements for sharing responsibilities for the common areas.

Planning – The process of formulating a program in advance to achieve desired results.

Planning commission – An agency of a local government charged with planning the development, redevelopment or preservation of an area.

Plat – A plan, map or chart of a tract or town site dividing a parcel of land into lots and showing boundary lines, streets, actual measurements and easements. See Plat map.

Plat – A recorded map of land that identifies a parcel by a number or other designation in a subdivision.

Plat book – A book containing a series of plat maps.

Plat book designation – A distinguishing name or number of a recorded subdivision or a tract of land so its location can be eaisly located in the public records.

Plat map – A detailed map of a section, subdivision or entire town showing the location and geographic boundaries of individual lots or parcels of real estate.

Pledge – The depositing of personal property by a debtor with a creditor as security for a debt or engagement.

Pledgee – A party who is given a pledge or a security. See Secured party.

Pledgor – A party who offers a pledge or gives security. See Debtor.

Plenum – The chamber in a warm-air furnace where the air is heated and from which the ducts carry the warm air to the registers.

Plot plan – An drawing of one parcel of land showing its lot dimensions, boundaries and improvements which are drawn to scale which may also include walks, driveways and roof plans of the various structures on the property.

Plottage – An act of consolidating, assembling or joining two or more contiguous parcels of land under a single ownership so as to be available for use as a larger single parcel. See Assemblage.

Plottage increment – An increase in value or utility resulting from consolidating, assembling or joining two or more contiguous parcels of land under a single ownership so as to be available for use as a larger single parcel. See Assemblage.

Plus interest – A loan payment plan that calls for straight or equal principal reduction payments plus the amoun t of accrued interest.

Plywood –A mulit-layered piece of wood that is glued together or laminated where each layer has the grain placed at a 90 degree angle to the other for increased strength.

PMI – See Private Mortgage Insurance.

Pocket card – An official document issued by most state licensing agencies and which some states require to be carried at all times that identifies its holder is a currently-licensed salesperson or broker.

Point Of Beginning, BOP – The starting point in a metes-and-hounds legal description located in one corner of the parcel and to which all metes-and-bounds descriptions must return.

Points – A charge where one point equals 1 percent of the loan amount which is assessed by a lending institution to increase the yield of a mortgage loan above the contract rate to the market rate so that it is competitive with other investments and which is equal to the difference between the stated principal amount on the note and the lesser amount loaned. See Discount points.

Police power – The right of the state to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.

Portfolio income – The income not earned in the ordinary course of business such as interest, dividends, royalties and gains from the sale of property. Also know as passive income.

Portico – A roof supported by columns which can be part of a building or free standing.

Possession – A right that an owner or a person holding tenant’s rights has to control, take custody of and use property.

Potable – Any water that is drinkable and not contaminated.

Potentially Responsible Parties, PRP – All current or past Superfund site owners, operators, transporters and disposers of hazardous waste are potentially responsible parties. See CERCLA, SARA, Superfund.

Power of attorney – A written document whereby a principal authorizes an agent who is called an attorney in fact to perform specified acts in a specific manner in designated transactions on his or her behalf.

Power of sale – The power that an instrument such as a trust deed grants to a trustee or mortgagee 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 trust deed or mortgage.

Prairie house – An early twentieth century style house whose architectural development is credited to Frank Lloyd Wright which has a long, low roof line, continuous rows of windows and an unornamented exterior which was designed to satisfy the physical and psychological needs of the inhabitants, it is unlike the traditional concept of a house that is a box subdivided into smaller boxes each with some doors and windows.

Preapproval – A lending practice whereby a borrower can demonstrate to a broker and a seller that they can qualify for an identified loan amount which permits a prospective buyers to shop with condidence that a loan will be approved.

Preclosing – A rehearsal of the closing in non-escrow states whereby instruments are prepared and signed by some or all parties to the contract which is used when a closing is expected to be complicated.

Prefabricated house – A house manufactured and sometimes partially assembled before being delivered to a building site. See Manufactured homes.

Preferred stock – A class of corporate stock entitled to preferential treatment such as a priority in the distribution of dividends.

Preliminary Report – A report issued by a title company prior to issuing the actual title insurance policy which shows the condition of recorded title of the property in question.

Preliminary title report – A report used as a basis for title insurance on the quality of the title which searches the public land records to determine the extent to which someone has legal interest in a parcel and also for encumbrances and liens or any other items of record that might affect ownership.

Premises – An improvement on estate of land which is often the subject matter of a conveyance.

Premium – 1. The cost of an insurance policy. 2. An amount over market value paid for some exceptional quality or feature. 3. The value of a mortgage or bond in excess of its face amount.

Prepaid interest – The interest paid before it has accrued or is due.

Prepaid items of expense – A prorations of expenses on a closing statement that have been prepaid by the seller and at the closing are credited back.

Prepayment – A payment on a loan that is greater than the amount due or in advance of its due date.

Prepayment clause – A clause in a loan contract that permits the borrower the right to make loan payments that are greater than the amount due or in advance of the due date.

Prepayment penalty – The charge payable under the terms of a loan agreement to a lender by a borrower if the outstanding principal balance of the loan is paid off prior to its maturity. See Penalty.

Prepayment yield – The sum that may be saved by a borrower by paying off a debt prior to its date due.

Prequalification – A preliminary assessment of a buyer's ability to secure a loan, based on a specific set of lending guidelines and buyer representations made which is not a guarantee or commitment by a lender to extend credit.

Prerogative – A sovereign power or official exclusive right or privilege held by a person or group.

Presale – The sale of properties such as condominiums prior to actual construction.

Prescription – A means of acquiring incorporeal interests in land of another such as an easement, by continued long-term use which typically is established in the statute of limitations.

Present value – The value today that is computed by measuring all future benefits of an investment and converting those benefits into terms of today’s dollars.

Preservation district – A zoning designation covering sensitive environmental areas, park lands, scenic areas or historic districts which places very strict limitations on the freedom of private landowners and nonowners to change the essential character of sites within that district

Presumption – An assumption of fact that the law requires to be made based on another fact or set of facts found or otherwise established.

Price – The amount of value in terms of money at which a property is offered for sale or is exchanged by a buyer at a sale.

Price fixing – An act that is illegal in most states which prohibits the fixing of a price in agreement with another individual or business for a product or service. See Antitrust laws.

Price level – A relative position on the scale of prices of labor, materials, capital, etc. found in one time frame as compared with prices at different other time frames.

Price-level-adjusted mortgage – A loan, which is not commonly used in the U.S. , whose payments are generally quite low and which get adjusted according to the rate of inflation.

Prima facie – A Latin term meaning at first sight which refers to a fact that is presumed to be true or legally sufficient to establish that fact unless it is rebutted or disproven by contrary evidence.

Primary financing – An identification of a mortgage or trust deed and a note as a loan of first priority because it has the earliest recording date for a specific property.

Primary lease – A lease between the owner and a tenant whose interest all or in part has been sublet to a new tenant.

Primary mortgage market – The mortgage market in which loans are originated that is made up of lenders such as commercial banks, savings and loan associations and mutual savings banks.

Primary residence – The main or principal home in which a person resides who may have multiple personal residences but for tax purposes may have only one primary residence. See Domicile.

Prime rate – The lowest interest rate charged by banks on short-term commercial loans made to their most creditworthy customers which tends to be an estimator for general trends in short term interest rates.

Prime tenant – A shopping center or office tenant who occupies the most space and is considered creditworthy and who attracts customers or traffic to the center or building. See Anchor tenant.

Principal – 1. A main party in a real estate transaction such as a buyer, seller, owner, lessor or borrower. 2. A party who is also called a client who has authorized another to act on his or her behalf and is represented by an agent. 3. An amount invested as an investment which is different than income or profits. 4. The amount of money borrowed or the amount of the loan due and payable at a certain date.

Principal and Interest payment, P&I – A payment in an amortized loan that is typically paid monthly that includes the interest charged for the period plus an amount that is applied to the amortization of the principal balance. See Mortgage constant and Amortization.

Principal balance – The amount that is currently outstanding of the original sum borrowed under a loan.

Principal broker – The licensed broker responsible for the complete operation of a brokerage firm.

Principal meridian – The meridian that serves as a reference for all other meridians.

Principal meridian – The meridian which serves as a reference point for the other meridians in the government survey system or rectangular survey system.

Principal note – The promissory note which is secured by the mortgage or trust deed.

Principal residence – A person’s primary residence used in income tax matters also known as a domicile.

Principal, Interest, Taxes and Insurance, PITI – A loan payment typically made monthly on an amortized loan that includes a Principal and Interest payment plus a contribution into a lender-established escrow account to pay property Taxes and Insurance premiums on the property. Commonly referred to as PITI,

Principle of anticipation – An appraisal principle that holds that value can increase or decrease based on the expectation of some future positive or negative impact on the property.

Principle of balance – An appraisal principle that holds that value is created, maintained and is greatest when all contrasting, opposing or interacting elements such as the four agents in the production of income – land, capital, management or labor – are in a state of equilibrium.

Principle of change – An appraisal principle holds that no physical or economic condition remains constant and that change is largely the result of cause and effect and that existence occurs in three states: integration, equilibrium and degeneration and that it is the future and not the past which is of prime importance in estimating value.

Principle of competition – An appraisal principle that holds that profits tend to breed competition and excess profits tend to breed ruinous completion.

Principle of conformity – An appraisal principle that holds that use conformity is desirable in creating and maintaining higher values and that maximum value is realized when a reasonable degree of homogeneity of improvements or similarity of properties is present in an area.

Principle of contribution – An appraisal principle that holds a component part of a property is valued in proportion to its contribution to the value of the whole and so maximum value is achieved when the improvements on a site produce the highest net return in comparison to the investment.

Principle of increasing and diminishing returns – An appraisal principle that holds that as successively greater increments of land, capital, management or labor are applied to a property a greater yield is produced until a maximum is reached and there is a decline.

Principle of progression – An appraisal principle that holds that the worth of a property of lesser quality will tend to be increased by being in association with property of higher quality in the same area and is the opposite of the principle of regression.

Principle of regression – An appraisal principle that holds that a property of higher quality in a neighborhood of properties of lower quality seeks the value level of the properties of lower quality and is the opposite of the principle of progression.

Principle of substitution – An appraisal principle that holds 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.

Principle of supply and demand – An appraisal principle that holds that market value is affected by the intersection of supply or quantity of units available and the demand forces or quantity of units desired in the market as of the appraisal date.

Principle of surplus productivity – An appraisal principle that holds that the net income that remains after the proper costs of labor, organization and capital have been paid and to which the surplus or remainder is imputable or attributable to the value of the land.

Prior appropriation – A concept of water ownership in which the landowner’s right to use available water is based on a government-administered permit system.

Prior lien – A lien which is senior or superior to others.

Priority – The order, usually established by the date and time of recording of written documents, in which rights in respect to the same subject matter are given legal precedence or preference.

Priority inspection – A title insuring term referring to an inspection made in connection with a new construction loan which assures the title company that no work has begun before the lender’s deed of trust is recorded.

Priority of lien – The order in which liens are given legal precedence or preference.

Private grant – The transferring of title to private property from one private party to another private party.

Private Mortgage Insurance, PMI – A type of mortgage insurance available to conventional lenders on the first, high risk portion of a loan guarantying payment.

Private offering – An investment or business offered for sale to a small group of investors that is generally exempt from registration with the Securities and Exchange Commission and state securities registration laws.

Private restriction – A restriction placed on real property by a grantor.

Private sector – The portion of the economy which produces consumed goods and services in contrast to the governmental portion.

Privity – A mutual contractual relationship to the same rights of property.

Privity of contract – The relationship which exists between the parties who are parties to a contract.

Pro forma statement – A financial statement which in Latin means according to form which shows what is expected to occur as opposed to what actually occurred.

Pro rata – In proportion and according to the fractional amount or a certain percentage or a proportion of a whole held by each party.

Probate – A word originally meaning merely relating to the proofs of wills but now it is a general name or term used to include all matters over which probate courts have jurisdiction which in many states are the estates of deceased persons and of persons under guardianship as well as trusts and trustees.

Probate Court – The Superior Court that has authority over the property of deceased persons as well as minors and insane persons.

Probate sale – A court-approved sale of the property of a deceased person

Procuring cause – The cause, originating from a series of events that without a break in continuity that results in the prime object of a licensee’s employment that of being the first to procure or produce the buyer who is ready, willing and able to buy the property for the agreed-upon price and terms and is therefore entitled to the commission.

Profit – The amount realized on the sale of an asset that is in excess of its cost.

Profit a prendre – The legal right to take part of the soil or produce from the land of another.

Profit and Loss statement, P&L – A financial report listing income and expenses, including depreciation and income tax deductions, showing profit or loss from operations over a given period of time such as a month, quarter or year.

Progress payments – The scheduled, periodic and partial payment of construction loan funds made to a builder as each stage of construction is completed.

Progressive tax – A tax in which the tax rate increases as the taxable quantity increases such as with the federal income tax system.

Promisee – A party to whom a promise is made.

Promissory note – A note that is signed by a borrower at the time of funding indicating a promise to repay the loan under the stipulated terms and where the note is the evidence of the debt and the borrower takes on liability for its repayment and the mortgage is the security for the debt. See Note.

Promotional note – A form of promissory note used with new subdivisions to attract buyers to real property by offering attractive, discounted lending packages to romote sales.

Property – Everything which is either personal property or real property that is capable of being lawfully owned and acquired and having the rights of ownership which are to possess, to use and enjoy, to encumber, to dispose of in any legal way and to exclude everyone else from interfering with those rights.

Property brief – A folder that presents pertinent information about a property.

Property line – A recorded boundary of a plot of land.

Property management – The day-to-day operation of real property including the marketing and leasing of space, collection of rents, selection of tenants and the maintenance, repair and renovation of the buildings and grounds and the financing of rental properties.

Property manager – A licensee who is an agent of the owner of real property or properties who is paid to handle all matters which are under his or her direction pertaining to its operation.

Property owners association – An organization established with the purpose of administering private regulations affecting residential land uses.

Property reports – The mandatory federal and state documents compiled by subdividers and developers to provide potential purchasers with facts about a property prior to their purchasing.

Property residual technique – An appraisal technique used in the income approach to estimate the total value of a property including both its land and its improvements.

Property services – The benefits accruing from the use of property.

Property tax – A government levy on privately owned property based on its market value or other uniformly-applied standard which is sometimes referred to as ad valorem tax or real estate tax.

Proportion – The degree of relationship or ratio between two things.

Proposition – An offer to purchase real estate or an offer to do something involving real estate.

Proprietary lease – A lease given by a corporation that owns a cooperative apartment building to a shareholder giving that shareholder the right to occupy an individual apartment, unit or space.

Proprietorship – A business run by its owner as an individual rather than as a corporation.

Prorate – To allocate expenses or income among the parties in proportion to the amount owed or earned. See Proration.

Proration – An adjustment of expenses such as interest, taxes and insurance that have either been prepaid or paid in arrears on a pro rata or proportional basis in proportion to actual time of ownership or use as of the closing or other agreed-upon date.

Proration of taxes – To divide or split the taxes usually between seller and buyer in proportion to actual time of ownership or use.

Prospectus – A printed document fully describing the characteristics of a proposed specific new property offering.

Protected class – Any group of people designated as such by the Department of Housing and Urban Development, HUD in accordance with federal and or state civil rights legislation which currently includes ethnic minorities, women, religious groups and the handicapped.

Proximate cause – That cause of an event, which typically involves a real estate commission which, in a natural and continuous sequence unbroken by any new cause, produced that event and without which the event would not have happened. See Procuring cause.

Proxy – 1. The document given by one person giving another person the lergal authority to represent them. 2. The person who represents another, particularly in some meeting.

Public dedication – The granting of private property for public use.

Public domain – The land belonging to the community at large to which the government holds title.

Public grant – A transfer of title by the government of publicly-owned property to a private party.

Public housing – The housing owned and operated by a governmental or non-profit group.

Public Housing Administration – A part of HUD which administers the legislation that provides loans and subsidies to local housing authorities to encourage the development of low-rental dwelling units.

Public lands – The vast amounts of acreage that is typically undeveloped and permits only limited activities such as grazing, wildlife management, recreation, timbering, mineral development, water development and hunting that are held by the federal or state government for conservation purposes.

Public property – The property owned by a government.

Public records – The records in a recorder’s office which by law give constructive notice to all of matters relating to land.

Public restriction – A governmental regulation limiting the use of real property.

Public sector – The portion of the economy which is most affected by and which also contains governmental bodies.

Public trustee – The county public official in certain states whose office was created by statute and to whom title to real property is conveyed by trust deed to protect the interests of the beneficiary who usually is the lender. See Trustee.

Pueblo or adobe house – An early twentieth-century house that is made of adobe brick or other material made to look like adobe brick and which has the unique characteristic of projecting roof beams.

Puffing – The illegal and unethical practice of making inflated or exaggerated or superlative statements or opinions that clearly do not represent the truth.

Punch list – An recording of items that need to be corrected prior to a sale or the acceptance of a completed construction project.

Punitive damages – A fine used to punish the wrongdoer that is assessed in excess of the damages actually suffered.

Pur autre vie – A life estate that is measured by the life of a another who is other than the one receiving the estate, the grantee.

Purchase agreement – See Sales contract.

Purchase and installment saleback – A purchase of property upon the completion of its construction which is immediately sold back under a long-term installment contract.

Purchase contract – See Sales contract.

Purchase money mortgage – A mortgage or trust deed given as all or part of the purchase price for real property which in some states the purchase money mortgage or trust deed loan can be made by a seller who extends credit to the buyer of property or by a third party lender which is typically a financial institution that makes a loan to the buyer of real property for a portion of the purchase price to be paid for the property

Purchase of land, leaseback and leasehold mortgages – An arrangement whereby land is purchased by the lender and leased back to the developer with a mortgage negotiated on the resulting leasehold of the income property constructed and whree the lender receives an annual ground rent, plus a percentage of income from the property.

Purchase on contract – The purchase of property on installments with title remaining with the seller. See Land contract.

Purchasing power risk – A risk that the value of an investment will decline as a result of inflation resulting in a decline in the purchasing power of the dollar.

Purpose of appraisal – To estimate the dollar value of the future utility of a parcel of real property for a specific purpose.

Pyramiding – The process of refinancing properties already owned and then investing the loan proceeds to acquire additional properties.

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Categories: Real Estate Words Glossary