Real Estate Glossary Terms Beginning With – P

Updated: November 22, 2021

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Terms Beginning With - P

Property Development & Investment Glossary, Terms & Definitions

Parcel

A parcel of land that is owned by only one person.

Partial release

The act of removing a general mortgage lien from a piece of the pledged property.

Partial taking

The seizing of merely a portion of the property or property rights in a condemnation.

Participation loan

A loan in which the lender shares in the property's future cash flow and resale profits.

Partition

The partition of property among individuals who have an undivided stake in it.

Partnership

An organisation of two or more persons acting as co-owners for the purpose of operating a profit-making enterprise.

Partnership agreement

An agreement between partners that spells out each party's responsibilities and rights.

Passive income

Rents, royalties, dividends, interest, and capital gains from the selling of securities are all sources of income.

Passive investor

A person who makes a financial investment but does not participate in its management.

Pass-through

Expenditures or a portion of tenancy expenses that are "passed through" from the landlord to the tenant and paid by the renter.

Payback method

Multipliers for real estate investing criterion based on rules of thumb.

Payback period

For the advantages of an investment, generally income or cash flow, to repay the whole cost or equity costs of the investment, there are rules of thumb that result in years.

Penalty

A price levied for breaking the law or breaching a contract's conditions.

Percentage lease

A lease in which the rent is calculated as a proportion of the lessee's gross revenue.

Percolation test

A test for determining the drainage properties of soil.

Performance bond

A bond offered by an insurance company to ensure that a building contract is completed.

Perimeter space

A defined region around the outside of a structure.

Permanent financing

A mortgage whose interest rate is linked to a floating index. At predetermined intervals, the interest rate is modified.

Personal guarantee

An individual's pledge to endorse a note or obligation.

Personal income tax rates

The federal tax rates that are applied to individual income in order to calculate the government's tax burden.

Personal property

Personality is a possession or object that is not actual property.

Personality

Everything that isn't firmly tied to the land.

Phantom income

Taxable income that may or may not have been received.

Physical depreciation

The depreciation of property as a result of the passage of time and the activity of the elements.

Physical life

The length of time that a building remains structurally sound, which is determined by the quality of its upkeep.

Piggyback loan

A loan that can be used for both construction and permanent purposes.

Planned unit development (PUD)

A zoning designation that permits a subdivision's design to be more flexible.

Plat

A map or plan of a certain land region.

Plat book

A public record that includes maps of land and street divisions.

Pledged account mortgage (PAM)

The mortgagor must commit a quantity of money at loan closing to be set aside to support periodic mortgage payments.

Plot plan

A graphic depicting the projected or current usage of a particular piece of land.

Plumbing walls

The walls that are given along sections where there are no preparations for pipe shafts, such as in the kitchen and bathrooms.

Points

A one-percentage-point fee applied by a lender to the principle loan amount.

Possessions

The right of a property owner to inhabit it. By right of title, the owner enjoys constructive possession of the property when it is inhabited by a renter.

Power of attorney

An instrument that authorises another person to serve as the grantor's agent.

Power of sale

A mortgage clause that allows the lender to sell the property if the borrower defaults.

Preclosing

A run-through of the ending.

Prelease

Prior to receiving a certificate of occupancy, secure a lease commitment.

Preliminary cost estimates

The first cost estimates, which are sometimes referred to as "ballpark" values. Prior to a more in-depth investigation, these data were calculated.

Premium

The price of a policy of insurance.

Prepaid expenses

Expenses that have been paid in advance of the period they are supposed to cover.

Prepayment clause

A mortgage clause that specifies the parameters of a mortgage loan's early repayment.

Prepayment penalty

A penalty imposed by a lender when a loan is repaid early.

Presale

The selling of a property before it is finished.

Prescription

Adverse possession is the process of acquiring property rights.

Present value

A sum of money that would be equivalent to a certain amount of money in the future if invested today at a set interest rate.

Present value of future selling price

The current value of the $1.00 component multiplied by the estimated future selling price.

Preventive maintenance

A programme that inspects the many physical components of a property on a regular basis.

Primary lease

A lease between a landlord and a tenant whose interest has been leased in whole or in part.

Prime rate

The interest rate that a lender charges its most credit-worthy borrowers.

Prime tenant

A business property's anchor tenant.

Principal

The most important participant in a transaction.

Principal amount

The mortgage loan's total amount.

Principal and interest payment (P & I)

The periodic payment of both the principle reduction and the interest required on a loan, generally made monthly.

Private limited partnership

A limited partnership with a small number of investors and shares that are not available to the general public.

Private mortgage insurance (PMI)

A mortgage insurance policy that pays off if the borrower defaults.

Procuring cause

A broker will be considered the transaction's procuring cause. If his efforts form the foundation on which the talks culminated in a closure, he is entitled to the real estate commission.

Profit and loss statement

A declaration that shows a property's operational results.

Proforma

A forecast of future earnings and costs.

Project

A property's intended development plan.

Projection

A prediction of a property's future performance.

Promoter

A syndicator is a person who organises a group of people

Property

To the exclusion of all others, an individual's rights in lands or assets.

Property line

A piece of land's recorded boundaries.

Property management

The management of real estate as a company.

Property management fee

A charge paid to a management business in exchange for services given, generally based on a portion of the revenue earned.

Property residual technique

A method for determining the worth of a property based on expected future income and the reversionary value of improvements and land in assessment.

Property rights

The "bundle of rights" refers to the legal rights and duties that come with ownership.

Property taxes

A local government tax based on the assessed value of a piece of property.

Proprietary lease

A document that grants a cooperative shareholder the right to occupy a unit under specified circumstances.

Prorations

The buyer and seller divide the prepaid or accumulated expenditures that are payable at the time of sale.

Prospectus

A document that outlines the specifics of a particular investment opportunity.

Public limited partnership

A limited partnership with shares available to the general public, allowing for a large number of investors.

Public sale

A public notice auction sale of a property.

Punch list

Prior to a sale, a list of items that need to be finalised or fixed.

Purchase contract

A prediction of a property's future performance.

Purchase money mortgage

A mortgage given to the seller at the same time as the purchase of real estate to protect the remainder of the purchase price that has not been paid.

Glossary Index

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