| Real Estate Terminology, Wording |
Gladwin Real Estate Information
Partial Payment
A payment that is less than the agreed upon monthly payment on a loan
Partition
The forced dividing of real estate among parties who were previously its co-owners
Patent
A first in a series of documents by which the federal or state government transfers ownership of public lands to an individual
Payment Change Date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment
mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
Pay-off Amount
The total balance on an existing loan or mortgage
Percolation Test
A testing of the soil on a property to evaluate if its absorption and drainage capacity will allow installation of a septic system
Periodic Payment Cap
For an adjustable-rate mortgage where the interest rate and the minimum payment amount fluctuate independently of one
another, this is a limit on the amount that payments can increase or decrease during any one adjustment period.
Periodic Rate Cap
For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one
adjustment period, regardless of how high or low the index might be.
Personal Property
Property that does not qualify as real property
PITI
Acronym for principal, interest, taxes and insurance, the four components of a monthly mortgage payment, which are taken
into account when a lender is evaluating a borrower's financial qualifications for a loan
PITI Reserves
A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase
of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have
to pay for PITI for a predefined number of months.
Planned Unit Development (PUD)
A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with
the other members of the development or association. Contrast with condominium, where an individual actually owns the
airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.
Plat, or Plot
A map showing a piece of land subdivided into lots, streets and common area, if applicable
P.M.I, or Private Mortgage Insurance
Acronym for Private Mortgage Insurance, see below
Point
A one-time fee charged by the lender for originating a loan, one point being equal to one percent of the amount of the
mortgage
Power of Attorney
A written legal document authorizing a person to act as agent for another, to the extent outlined in the document
Power of Sale
A provision in a will, mortgage or trust agreement authorizing the sale or transfer of land in accordance with the terms of the
provision
Pre-Approval
A commitment from a lender to loan a certain amount of money to a buyer at a designated interest rate and for a specified
period of time, which gives the buyer an advantage in competing to purchase real estate or a home
Preforeclosure Sale
The sale of a property by a mortgagor for less than the amount owed to the lender of the mortgage for the property, thereby
allowing the mortgagor to avoid foreclosure, and done with the approval of the lender
Prepayment Penalty
A fee that is charged by the lender to a borrower who pays off a loan earlier than the due date, thereby costing the lender
interest and other income from charges
Pre-qualification
The process by which the amount of loan a prospective buyer will be eligible to borrow is determined, based on his or her
income and expenses, which can be used to demonstrate the buyer's financial capability to the seller
Prime Rate
The most favorable interest rate that banks charge, usually to their preferred customers
Principal
The amount borrowed, not including interest or other charges
Principal Balance
The portion of the original amount borrowed that is due on a loan or mortgage at any point in time
Private Mortgage Insurance, or P.M.I.
A policy that insures that the lender will recover a specific percentage of the loan amount from the insurance company in the
event that the borrower defaults; is not backed by any government agency; is usually required when a down payment of less
than 20% is put on real estate or a home purchased
Probate
The court proceedings to prove that a will is valid
Procuring Cause
The action or person who brings about the desired result; e.g., under an open listing, the broker who brings in the buyer who
actually purchases the property
Promissory Note
A written promise to pay a specified amount of money in a designated period of time, which is also transferable to a third party
Prorate
To divide the proportionate share of existing expenses on a piece of property between the seller and buyer, e.g., taxes owed
at the time of a transfer of title from the seller to the buyer
Public Auction
A meeting in an announced public location to sell property to repay a mortgage that is in default.
Purchase and Sale Agreement
A written contract signed by the buyer and seller that states the conditions under which a property will be transferred or sold
Purchase Money Mortgage
An agreement whereby financing provided by the seller is included in the purchase price
Purchase Toney Transaction
The acquisition of property through the payment of money or its equivalent.
A payment that is less than the agreed upon monthly payment on a loan
Partition
The forced dividing of real estate among parties who were previously its co-owners
Patent
A first in a series of documents by which the federal or state government transfers ownership of public lands to an individual
Payment Change Date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment
mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
Pay-off Amount
The total balance on an existing loan or mortgage
Percolation Test
A testing of the soil on a property to evaluate if its absorption and drainage capacity will allow installation of a septic system
Periodic Payment Cap
For an adjustable-rate mortgage where the interest rate and the minimum payment amount fluctuate independently of one
another, this is a limit on the amount that payments can increase or decrease during any one adjustment period.
Periodic Rate Cap
For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one
adjustment period, regardless of how high or low the index might be.
Personal Property
Property that does not qualify as real property
PITI
Acronym for principal, interest, taxes and insurance, the four components of a monthly mortgage payment, which are taken
into account when a lender is evaluating a borrower's financial qualifications for a loan
PITI Reserves
A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase
of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have
to pay for PITI for a predefined number of months.
Planned Unit Development (PUD)
A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with
the other members of the development or association. Contrast with condominium, where an individual actually owns the
airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.
Plat, or Plot
A map showing a piece of land subdivided into lots, streets and common area, if applicable
P.M.I, or Private Mortgage Insurance
Acronym for Private Mortgage Insurance, see below
Point
A one-time fee charged by the lender for originating a loan, one point being equal to one percent of the amount of the
mortgage
Power of Attorney
A written legal document authorizing a person to act as agent for another, to the extent outlined in the document
Power of Sale
A provision in a will, mortgage or trust agreement authorizing the sale or transfer of land in accordance with the terms of the
provision
Pre-Approval
A commitment from a lender to loan a certain amount of money to a buyer at a designated interest rate and for a specified
period of time, which gives the buyer an advantage in competing to purchase real estate or a home
Preforeclosure Sale
The sale of a property by a mortgagor for less than the amount owed to the lender of the mortgage for the property, thereby
allowing the mortgagor to avoid foreclosure, and done with the approval of the lender
Prepayment Penalty
A fee that is charged by the lender to a borrower who pays off a loan earlier than the due date, thereby costing the lender
interest and other income from charges
Pre-qualification
The process by which the amount of loan a prospective buyer will be eligible to borrow is determined, based on his or her
income and expenses, which can be used to demonstrate the buyer's financial capability to the seller
Prime Rate
The most favorable interest rate that banks charge, usually to their preferred customers
Principal
The amount borrowed, not including interest or other charges
Principal Balance
The portion of the original amount borrowed that is due on a loan or mortgage at any point in time
Private Mortgage Insurance, or P.M.I.
A policy that insures that the lender will recover a specific percentage of the loan amount from the insurance company in the
event that the borrower defaults; is not backed by any government agency; is usually required when a down payment of less
than 20% is put on real estate or a home purchased
Probate
The court proceedings to prove that a will is valid
Procuring Cause
The action or person who brings about the desired result; e.g., under an open listing, the broker who brings in the buyer who
actually purchases the property
Promissory Note
A written promise to pay a specified amount of money in a designated period of time, which is also transferable to a third party
Prorate
To divide the proportionate share of existing expenses on a piece of property between the seller and buyer, e.g., taxes owed
at the time of a transfer of title from the seller to the buyer
Public Auction
A meeting in an announced public location to sell property to repay a mortgage that is in default.
Purchase and Sale Agreement
A written contract signed by the buyer and seller that states the conditions under which a property will be transferred or sold
Purchase Money Mortgage
An agreement whereby financing provided by the seller is included in the purchase price
Purchase Toney Transaction
The acquisition of property through the payment of money or its equivalent.