Vocabulary P Flashcards
(12 cards)
Packed mortgage
Loan secured by personal as well as real property (collateral)
Partnership
Association of two or more persons who carry on a business for profit
Percentage
A given part of 100
Percentage lease
Percentage lease requires a fixed minimum rent, regardless of the tenants business income
Performance
Completion of a promised act.
PITI
Principal, Interest, Taxes and Insurance, or the component of a typical mortgage payment
Plottage
Economic principle influencing the amount of value, which states that merging or combining separately own parcels of real property under a single owner will increase the value of the separate parcels
Police power
Government authority to create laws, including those that promote legitimate land use objectives, so long as such further public health, safety, morals and aesthetics
Potential gross income
The maximum potential rental income a rental property could produce if all units were occupied
Power of sale clause
Authorization usually found on a deed of trust, which authorizes a trustee to sell financed property if the buyer defaults on the loan
Premises clause
Precision appearing in a deed, also known as granting clause (because it contains words of conveyance), which names the parties to the transaction, the extent of ownership, the consideration, and the legal description of the property
Prepayment clause
Provision on a mortgage, deed of trust, which specifies whether the borrower must pay the penalty if he pays the entire loan amount prior to maturity date.
