Partnership There are several partnership
options for unmarried individuals to buy a piece of
property, such as live-in partnerships (in which both
buyers share the residence) or a shared-equity
partnership (in which one buyer lives in the home and
the other is an investor in the property).
Passive loss A tax term that refers to any
loss from a passive activity, such as the ownership but
not the operation of a piece of rental real estate.
Passive solar system A system that supplies
solar heat without the use of electric fans or pumps.
Patent defect A visible deficiency in a
piece of property, such as a cracked basement slab or a
sagging porch.
Payment cap A legal limit on the amount a
monthly payment can increase on an adjustable-rate
mortgage.
Percolation test A test used to determine
the ability of soil to accommodate a septic system.
Per-diem interest Interest charged or
accrued daily.
Panel A section or division of a wall,
ceiling or a flat piece of building material that forms
the part of the surface of a wall, door or cabinet.
Paneling Strips of wood or wood material
applied as a finish to a wall.
Parking strip The strip of grass between
the sidewalk and the street in front of a house.
Partition Any kind of structure dividing
one room or space from another.
Patio An interior courtyard or a paved
backyard area.
Perennial Any plant that produces leaves,
flowers and seeds from year to year, such as irises or
peonies.
Punch list Buyers compile a punch list
during the final walk-through detailing items to be
fixed before closing.
Purchase agreement A document which details
the purchase price and conditions of the transaction.
Purchase-money mortgage A mortgage that a
borrower obtains to acquire a property.
Pergola An arbor with an open roof of
rafters supported by posts or columns.
Personal property Any moveable property in
a house such as furniture or appliances.
Pest-control inspection A common
pest-control inspection is a termite inspection, which
is required in some states, such as California.
Pier A rectangular masonry support column.
PITI (Principal, Interest, Taxes, Insurance) When
a buyer applies for a loan, the lender will calculate
the principal, interest, taxes and insurance. The figure
is designed to represent the borrower's actual monthly
mortgage-related expenses.
Planned communities The concept began in
the 19th century and describes any town or neighborhood
built with certain guidelines and goals.
Planned-unit development Residents own the
home and the land, and share the use and financial
responsibility for common areas.
Plaster A labor-intensive and more costly
wall finish.
Pocket door A sliding door that retreats
into the wall when opened.
Point Fees charged by lenders at the time a
loan is originated. A point is equal to 1 percent of the
total loan amount.
Porch The structure can be a simple covered
entrance to a home or a fully enclosed room on the
outside of a residence.
Porte cochere A porch-like roof extending
over a driveway.
Portfolio lender A lender who makes loans
with its own funds and keeps the loans on the company's
books--in other words, inside the institution's
"portfolio"--rather than selling the loan on the
secondary market.
Portico A porch supported by a row of
columns.
Possession When a buyer signs the papers
and receives the keys to the house, the buyer officially
takes possession.
Power of attorney A document that
authorizes an individual to act on behalf of someone
else.
Pre-approval letter A letter from a lender
that informs a seller about the amount of money that a
potential buyer can obtain.
Prepaid expenses The costs for taxes,
insurance and assessments paid before the due date.
Prepaid interest Interest paid before it is
due. For example, at the close of a real estate
transaction borrowers usually pay for the interest on
their loan that falls between the closing period and the
first monthly payment.
Prepayment penalty Lenders can impose a
penalty on a borrower who pays a loan off before its
expected end date.
Prequalification Many lenders will
prequalify a borrower who is shopping for a loan by
completing a preliminary assessment of the buyer's
ability to pay for a home.
Pre-sold home Homes that are sold before
they are built.
Pressure relief valve A safety vent that
relieves excess pressure in a water heater.
Price range The range of how much a buyer
is willing to pay for a home.
Primer The initial coat of paint that is
applied before the final topcoat.
Principal The amount of money that the
borrower owes on a mortgage.
Principle of conformity The idea that a
house will more likely appreciate in value if its size,
age, condition and style are similar to, or conform to,
other houses in the neighborhood.
Principle of progression An appraisal term
which states that real estate of lower value is enhanced
by the proximity of higher-end properties.
Principle of regression An appraisal term
which states that the value of higher-end real estate
can be brought down by the proximity of too many
lower-end properties.
Privacy fence A structure erected between
two pieces of property.
Private mortgage insurance (PMI) A special
type of loan insurance that many lenders require
borrowers to purchase if the borrower's down payment is
less than 20 percent of the home's purchase price.
Probate sale A real estate sale triggered
by the death of the owner, with proceeds to be divided
among heirs or creditors.
Production home Homes that are
mass-produced by one builder in a project.
Programming A written summation by an
architect of a project's design objectives, constraints
and criteria.
Project budget A fiscal outline that
includes the construction budget and all costs for land,
furniture, equipment, financing, professional services,
contingencies and owner-furnished goods and services.
Property line The official dividing line
between properties.
Property report A disclosure issued by the
state when a time-share project is located or sold.
Property tax Property taxes are calculated
at about 1.5 percent of the current market value.
Property tax deduction The U.S. tax code
allows homeowners to deduct the amount they have paid in
property taxes.
Property value The value of a piece of
property is based on the price a buyer will pay at a
certain time.
Proration Agreed-upon percentages of
certain expenses associated with a piece of property
that must be paid by the buyer or the seller at the time
of closing.
