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P&I

Also referred as principal and interest. These are monthly fees such as mortgage payments excluding taxes and insurance charges that are paid in escrow.

panel

Part of a wall, ceiling or flat piece of building material that forms part of the surface.

An electrical distribution box with circuit breakers, fuses and terminals which house the wiring.

panel door

A type of door frame with horizontal rails and vertical stiles that surround raised or recessed panels.

paneling

Strips of wood or wood-like material applied as a finish to a wall.

parcel

A piece of land.

parget

A coating that is applied to a foundation wall to prevent water leakage.

parking strip

The strip of grass that is between the sidewalk and the street.

particleboard

A board composed of wood chips glued together under pressure.

partition

A structure that divides one room from another.

partnership

Unmarried individuals who buy a piece of property together.
There are two types of partnership options:

1. live-in partnership – both buyers share the residence;

2. shared-equity partnership – one buyer lives on the property and the other is an investor in the property.

party wall

A wall built along the boundary between two properties.

pass-through

An opening that is set in a wall between the kitchen and breakfast or dining room.

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 deficiency in a property that is visible.

patio

An interior courtyard or a paved backyard area.

payment cap

The legal limit that a monthly payment amount can increase with an adjustable rate mortgage.

pediment

A decorative panel above a doorway.

per-diem interest

Interest that is charged or accrued daily.

percolation test

A test that is used to determine the ability of soil to accommodate a septic system.

perennial

Plants that grow from seeds or bulbs year after year.

pergola

An arbor that has open roof rafters that are supported by posts or columns.

personal property

Unattached and movable property in a house.

pest-control inspection

An inspection of the property for insect infestation.

photoelectric switch

A switch that automatically turns the lights or other electrical devices on or off depending on the amount of light.

pier

A rectangular masonry support column.

pigtail

A short wire that is connected to another wire with a wire nut.

pigtail cord

A short electrical cord with an integral plug; designed to be attached to an appliance.

pilasters

Decorative vertical columns attached to the wall or frame on each side of a doorway.

pilot

The flame or electronic control that ignites gas or oil burners.

pilot light

A small, continuously burning gas flame inside an appliance that ignites the appliances gas burner when it is turned on.

pipestem lot

A lot that is connected to the street by a narrow strip of land.

pitch

The slope of a roof calculated by the ratio of vertical rise to horizontal run.

PITI (principal, interest, taxes, and insurance)

A payment amount that is calculated by the lender to include the principal, interest, taxes, and insurance on an amortizing loan. The calculated amount represents the borrower’s actual monthly mortgage-related expenses.

pivot rod

The pop-up assembly in a sink or tub that either pushes the stopper up or pulls the stopper down.

plane

A tool that is designed for shaving off small amounts of wood.

planned community

Any town or neighborhood that has been built within certain guidelines or goals.

planned unit development (PUD)

A residential project that consists of a cluster of homes surrounded by areas of commonly owned open space that is maintained by a nonprofit community association.

plaster

A labor-intensive wall finish consisting primarily of lime, sand, and water.

plat book

A public record of maps that shows the division of streets, blocks and lots, and indicates the measurements of individual parcels of land.

plate

The bottom or top piece of a wall.

plenum

The heat distribution box on a furnace or central air-handling unit.

PMI (private mortgage insurance)

A type of insurance that lenders require on a loan when the borrowers down payment or property equity is less than 20 percent of the property value; the insurance provides partial protection to the lender if the borrower defaults on the loan.

pocket door

A type of interior door that recesses into the wall when open.

point

An amount equal to 1 percent of the loan amount.

porch

A structure that is an entrance to a home.

porte-cochère

A porch-like roof that extends over a driveway.

portfolio lender

A lender that makes loans using its own funds and keeps the loans on the company’s books but in other words, rather than selling the loans on a secondary market.

portico

A porch that is supported by a row of columns.

possession

The term used when a buyer officially takes possession of a property upon signing the closing papers and receiving the keys.

power of attorney

A document that authorizes an individual to act on behalf of someone else.

pre-approval

The completion of a loan application, the through assessment the lender makes of a potential borrowers ability to pay for a property and the confirmation of the amount to be borrowed.

pre-approval letter

A letter issued from a lender that advises the borrower of the amount of money that can be borrowed.

pre-sold home

A home that is sold before it is built.

prepaid expenses

Expenses that are paid before their due date.

prepaid fees

Funds collected by the lender from the borrower to pay in advance for certain recurring items.

prepaid interest

Interest that is paid before it is due.

prepayment penalty

A penalty that a lender may impose on the payment of a loan off before its expected end date.

prequalification

The preliminary assessment the lender does on a buyer’s ability to pay for a home and an estimate of how much the buyer can borrow.

pressure relief valve

A safety vent that relieves excess pressure in a water heater.

price range

The upper and lower limit that a buyer is willing to pay for a home.

prime lending rate

1. The minimum short-term interest rate charged by commercial banks to their most creditworthy clients.

2. The rate used as a basis for mortgages, business and personal loans.

primer

The initial preparation of paint or a sealant that is applied to a surface to prepare it for painting.

principal

1. The amount of money originally borrowed in a mortgage, minus any payments made subsequently.

2. The seller, the broker or the agent’s client.

principal and interest

The combined amount of the loan that includes the principal amount and the interest; the total amount that must be repaid.

principal paid over life of loan

The sum of scheduled principal payments is calculated by the lender to equal the face amount of the loan.

principal, interest, taxes, and insurance (PITI)

A payment amount that is calculated by the lender to include the principal, interest, taxes, and insurance on an amortizing loan. The calculated amount represents the borrower’s actual monthly mortgage-related expenses.

principle of conformity

The thought that a house will appreciate in value when the size, age, condition and style are similar 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 close proximity of lower-end real estate.

privacy fence

A structure that is erected between two pieces of property.

private mortgage insurance (PMI)

A type of insurance that lenders require on a loan when the borrowers down payment or property equity is less than 20 percent of the property value; the insurance provides partial protection to the lender if the borrower defaults on the loan.

probate

The process of establishing the validity of a will before a duly authorized court or person.

processing fee

A fee charged by lenders for gathering the necessary information to process the loan.

procuring cause

A legal term that is used to determine whether a broker is entitled to a commission.

production home

Homes that are mass-produced by one builder.

programming

A written summation by an architect of a projects design objectives, constraints, and criteria.

project budget

A financial document that details the construction budget including the costs for land, furniture, equipment, financing, professional services, contingencies, and owner-furnished goods and services.

property line

An official dividing line between properties.

property report

A disclosure that is filed with the state when a time-share project or subdivision is sold.

property tax

Tax paid on privately owned property and based on local tax rates and a property value assessment.

property tax deduction

A tax deduction for the amount homeowners have paid in property taxes.

property value

The value of a property based on the price that buyers will pay at a specific time.

prorate

To allocate percentages of certain expenses that will be paid by the buyer and seller at the time of closing.

PUD (planned unit development)

A residential project that consists of a cluster of homes surrounded by areas of commonly owned open space that is maintained by a nonprofit community association.

punch list

A list compiled by a buyer prior to a sale detailing items to be fixed before closing.
A list that is completed bye a buyer prior to the sale, which details the items to be fixed before closing.

purchase agreement

A document that details the purchase price and conditions of the transaction.

purchase contract

A legal document that binds the buyer and the seller to the purchase and sale of a property.

purchase-money mortgage (PMM)

A mortgage obtained by a borrower as partial payment for a property