# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Package Mortgage	A method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, refrigerator, stove and other specified appliances.
Parcel	A specific portion of a larger tract; a lot.
Parking Ratio or Index	The intent of this ratio is to provide a uniform method of expressing the amount of parking that is available at a given building. Dividing the total rentable square footage of a building by the building’s total number of parking spaces provides the amount of rentable square feet per each individual parking space (expressed as 1/xxx or 1 per xxx). Dividing 1000 by the previous result provides the ratio of parking spaces available per each 1000 rentable square feet (expressed as x per 1000).
Partial Release	A clause found in a mortgage which directs the mortgagee to release certain parcels from the lien of the blanket mortgage upon the payment of a certain sum of money.
Partial Taking	The taking of part (a portion) of an owner’s property under the laws of eminent domain.
Participation Mortgage	A mortgage in which the lender participates in the income of the mortgaged venture beyond a fixed return, or receives a yield on the loan in addition to the straight interest rate.
Partition	The dividing of common interests in real property owned jointly by two or more persons.
Partnership	"An association of two or more persons to carry on as co-owners a business for profit," as defined in the Uniform Partnership Act, which is in force in a majority of the states.
Party Wall	A wall which is located on or at a boundary line between two adjoining parcels and is used or is intended to be used by the owners of both properties in the construction or maintenance of improvements on their respective lots.
Pass Throughs	Refers to the tenant's pro rata share of operating expenses (i.e. taxes, utilities, repairs) paid in addition to the base rent.
Penthouse	An apartment located on the roof of a building, or more commonly, an apartment on the top floor of a building.
Percentage Lease	Refers to a provision of the lease calling for the landlord to be paid a percentage of the tenant's gross sales as a component of rent. There is usually a base rent amount to which "percentage" rent is then added. This type of clause is most often found in retail leases.
Percentage Rent	Not often used in office properties, but typically in retail properties. This is rent above the base rent and building operating expenses. Often it is based on business volume conducted in the rented space.
Percolation Test	A hydraulic engineer's test of soil to determine the ability of the ground to absorb and drain water.
Performance Bond	A surety bond posted by a contractor guaranteeing full performance of a contract with the proceeds to be used to complete the contract or compensate for the owner’s loss in the event of nonperformance.
Periodic Tenancy	A leasehold estate which continues from period to period, such as month to month, year to year. All conditions and terms of the tenancy are carried over from period to period, and continue for an uncertain time until proper notice of termination is given.
Permanent Financing	A long-term loan, as opposed to an interim loan.
Permitted Uses	A paragraph in a lease which describes how the Tenant may use the space i.e. administrative office. Becomes important if zoning is in question or if Tenant plans unique purpose, or if a sublease is pursued.
Personal Property	Things which are tangible and moveable; property which is not classified as real property; chattels; personalty.
Phase One Study	A review of the current and historical environmental condition of a property. Federal Lending guidelines impose Lenders to have investigated the environmental soundness of a property. Furthermore, environmental risk and liability is connected to ownership and may expose tenants to financial resolution costs.
Piggyback Loan	A joint loan with two lenders sharing a single mortgage.
Planned Unit Development (PUD)	A modern concept in housing designed to produce a high density of dwellings and maximum utilization of open spaces.
Plat (Plat Map)	Map of a specific area, such as a subdivision, which shows the boundaries of individual parcels of land (e.g. lots) together with streets and easements.
Plottage	The merging or consolidating of adjacent lots into one larger lot, with the consequent result of improved usability and increased value; also called assemblage.
Pocket Listing	A listing which is retained by the listing broker or salesperson, which does not make it available to other brokers in the office or to other Multiple Listing Service members.
Point of Beginning	The starting point in a metes and bounds description of property, which is usually a street intersection or a specific monument.
Points	A generic term for a percentage of the principal loan amount which the lender charges for making the loan; each point is equal to one percent of the loan amount.
Police Power	The constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals and general welfare.
Porte Cochere	A roofed structure extending from the entrance of a building over an adjacent driveway to shelter those getting into or out of vehicles.
Possession	The act of either actually or constructively possessing or occupying property.
Power of Attorney	A written instrument duly signed and executed by an individual which authorizes an agent to act on his behalf to the extent indicated in the document.
Power of Sale	Clause inserted in a mortgage or deed of trust giving the mortgagee (or trustee) the right and power, on default in the payment of the debt secured, to advertise and sell the property at public auction.
Precast Concrete	Concrete components (i.e. walls) of a building which are fabricated at a plant site and then shipped to the site of construction.
Preleased	Refers to space in a proposed building that has been leased before the start of construction or in advance of the issuance of a Certificate of Occupancy.
Preliminary Title Report	Generated by a Title Company as a review of liens, encumbrances, ownership, and taxes on a property. Normally done in preparation for a sale transaction. Large space Tenants may request a title report to confirm various property information, rather than relying on Owner.
Premises	The subject property, such as the property which is deeded or the unit that is leased.
Prepaid Interest	The paying of interest before it is due.
Prepayment Penalty	The amount set by the creditor as a penalty to the debtor for paying off the debt prior to its maturity. The prepayment penalty is charged by the lender to recoup a portion of interest that he had planned to earn when he made the loan.
Prepayment Privilege	The right of the debtor to pay off part or all of the debt without penalty prior to maturity, such as in a mortgage or agreement of sale.
Pre-Sale	A pre-construction sale program by a condominium developer who is required to sell a certain percentage of units before a lender will commit to finance construction of the project.
Prescription	The acquiring of a right in property, usually in the form of an intangible property right such as an easement or right-of-way, by means of adverse use of property that is continuous and uninterrupted for the prescriptive period.
Present Value of One Dollar	A doctrine which is based on the fact that money has a time value. The present worth of a payment to be received at some time in the future is the amount of the payment less the loss of interest.
Prime Rate	The minimum interest rate charged by a commercial bank on short-term loans to its largest and strongest clients(those with the highest credit standings).
Prime Space	This typically refers to first generation (new) space that is currently available for lease and which has never before been occupied by a tenant.
Prime Tenant	The major tenant in a building or, the major or anchor tenant in a shopping center serving to attract other, smaller tenants into adjacent space because of the customer traffic generated.
Principal Broker	The licensed broker directly in charge of and responsible for the real estate operations conducted by a brokerage company.
Private Mortgage Insurance	A special form of insurance designed to permit lenders to increase their loan-to-market-value ratio, often up to 95 percent of the market value of the property.
Pro Forma Statement	A projection of future income and expenses.
Pro rata	Proportionately; according to measure, interest, or liability. In the case of a tenant, the proportionate share of expenses for the maintenance and operation of the property. See also "Common Area" and "Operating Expenses".
Probate	The formal judicial proceeding to prove or confirm the validity of a will. The will is presented to the probate court, and creditors and interested parties are notified to present their claims or to show cause why the provisions of the will should not be enforced by the court.
Procuring Cause	That effort which brings about the desired result, as in producing the buyer for the listed property.
Promissory Note	An unconditional written promise of one person to pay a certain sum of money to another, or order, or bearer, at a future specified time.
Property	The rights or interests a person has in the thing owned; not, in the technical sense, the thing itself. These rights include the right to possess, to use, to encumber, to transfer and to exclude, commonly called the "bundle of rights."
Property Management	That aspect of real estate devoted to the leasing, managing, marketing and overall maintenance of the property of others.
Property Report	A disclosure document required under the federal interstate land sales act where applicable to the interstate sale of subdivided lots.
Proprietary Lease	A written lease in a cooperative apartment building, between the owner-corporation and the tenant-stockholder, in which the tenant is given the right to occupy a particular unit.
Pro-Rata Share	An amount calculated by dividing the square foot of the Tenants space by the entire building size. A 1,000 sq ft Tenant would have a 10% pro-rata share of a 10,000 sq ft building. Attention should be paid to variances in occupancy levels, particularly as it relates to expense overages.
Prorate	To divide or distribute proportionately.
Prospect	A person or corporation who may be interested in buying or selling real property. The prospect does not become a client until the parties establish a fiduciary relationship, such as upon signing a listing contract or upon executing a DROA.
Prospectus	A printed statement distributed to describe, advertise and give advance information on a business, venture, project or stock issue.
Puffing	Exaggerated or superlative comments or opinions not made as representations of fact and thus not a grounds for misrepresentation. A statement such as "the apartment has a fantastic view," is puffing because the prospective buyer can clearly assess the view in each case.
Punch List	An itemized list, typically prepared by the architect or construction manager, documenting incomplete or unsatisfactory items after the contractor has notified the owner that the tenant space is substantially complete.
Purchase Money Mortgage	A mortgage given to the seller as part of the buyer's consideration for the purchase of real property, and delivered at the same time that the real property is transferred as a simultaneous part of the transaction.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z