P words Flashcards
(40 cards)
Package Loan
A type of loan used in home financing covering real property, improvements, and
movable equipment/appliances.
Partition
A division of real or personal property or the proceeds therefrom among co‐owners.
Percentage Lease
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.
Periodic Tenancy
A lease that automatically renews for successive periods unless terminated by either
party; also called estate from year to year.
Personal Property
All property that is not considered to be real property. That which is movable (not
attached to land).
Physical Obsolescence
The loss in value due to the actual wearing out of the improvements.
Planned Development
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.
Plot Plan
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.
Police Power
The right of any political body to enact laws and enforce them, for the order, safety,
health, morals and general welfare of the public.
Positive Easement
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.
Possessory Interest
The right to control a property and to exclude other from the present, exercised
by one who is not necessarily the owner.
Power of Attorney
The authority to act for another person in specified or all legal or financial matters.
Power of Sale
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.
Pre‐Approval
A step above pre‐qualification, it involves verifying a purchaser’s credit, down payment,
and employment history.
Prepayment Penalty
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.
Pre‐Qualification
A lender gives a purchaser a letter stating that he prequalifies for a loan.
Present Interest
The unrestricted right to the immediate use, possession, or enjoyment of property or
the income therefrom.
Primary Mortgage Market
The marketplace whereby loans are originated.
Principal
The employer of an agent; one of the main parties in a real estate transaction, such as a
buyer, borrower, seller, or lessor.
Principle of Anticipation
Affirms that value is created by anticipated benefits to be derived in the
future.
Principle of Change
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.
Principle of Conformity
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.
Principle of Contribution
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.
Principle of Substitution
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.
