Real Estate Terms Glossary - P

· Parcel   An officially described piece of land.

· Partition   An interior wall.

· 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 pre-qualify 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.