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Panic peddling
The illegal practice of inducing panic selling in a
neighborhood by making representations of the entry,
or prospective entry, of members of a minority group;
Blockbusting
Party wall
Wall erected on line between adjoining properties for
the use of both properties.
Patio home
A single-family home that sits on a small lot, often
with one outside wall of the structure sitting on the
property line. Patio homes have no common structural
walls with adjoining propeties, but their zero lot line
wall may form part of their neighbors backyard fence/wall.
These properties often have a small back or side yard
large enough for a patio or garden area. Also
known as a garden home.
Percentage lease
Lease in which all or part of rental is a specified
percentage of gross income from total sales made upon
the premises.
Person
An individual, a partnership, or a corporation, foreign
or domestic.
Personal property
Property which is tangible, movable, and not fixed to
the land. Also called chattel and personalty. Contrast
with eal property.
Personalty
Personal property; chattel. Contrast with Realty.
Physical deterioration
The loss of value to real property from all causes due
to the action of the elements and old age. Physical
deterioration can be either curable or incurable.
PITI
Principal, Interest, Taxes and Insurance.
Planned unit development (PUD)
In a PUD, the planned unit development association owns
and maintains property in a real property development
project for the benefit of its members, who are owners
of individual parcels of real property in the development
and are members of the association because of that ownership.
The level of services and fees are similar to a condominium
complex, but since each owner has title to a specific
parcel of land, lenders may treat units as non-condominiums.
This allows higher LTV loans and eliminates owner occupancy
percentage requirements.
Plat book
A record of recorded subdivisions of land.
PMI
Acronym - private mortgage insurance.
Points
Fees paid to induce lenders to make mortgage loans at
a particular interest rate. Each point is equal to one
percent (1%) of the loan principal. Same as discount
points.
Police power
The authority of a government to adopt and enforce law
governing the use of real estate based on the need to
promote public safety, health, and general welfare.
Power of attorney (POA)
A written authorization by a person to another person
to act for him on his behalf.
Prepayment
Paying off all or part of the mortgage before the scheduled
date.
Prepayment clause in a mortgage
Statement of the terms upon which the mortgagor (borrower)
may pay the entire or stated amount on the mortgage
principal at some time prior to the due date.
Prepayment penalty
A fee paid to the lending institution for paying a loan
prior to the scheduled maturity date.
Primary mortgage market
Lenders who originate loans and makes funds available
directly to the borrowers. Contrast with secondary mortgage
market.
Prime rate
The interest, or discount rate charged by a commercial
bank to its largest and strongest customers.
Principal
The amount of money owed to the lender not including
interest.
Principle of conformity
An appraisal principle which holds that the maximum
value is realized when a reasonable degree of homogeneity
(sameness) exists in a neighborhood.
Private mortgage insurance (PMI)
Default insurance on conventional loans, normally insuring
the top 20%-25% of the loan and not the whole loan.
Promulgated contracts
The Texas Real Estate Commission has prepared and authorized
various standard contracts which must be used by all
licensees when acting as agents in real estate transactions
with limited exceptions.
Property taxes
Taxes that are paid yearly on real property. Property
taxes are ad valorem, based on the assessed value of
the real property. In Texas the assessed value
is determined by the County Appraisal District.
Each taxing authority multiplies this appraised value
by its annual tax rate. Taxing authorities include
local school districts, counties, cities, water districts(MUD's,
PUD's, LID's, etc.), and other special tax districts.
Pro-rate
To divide or distribute proportionally. At closing,
various expenses such as taxes, insurance, interest,
rents, etc. are prorated between the seller and buyer.
Public Utility District (PUD)
A water district, created by a city or county, promoting
development of a designated area by providing water
and sewer services. The PUD operates in the same
manner as a Municipal Utility District,
but is created by a local government, not a private
developer.
Puffing
Non-factual or extravagant statements and opinions made
to enhance the perceived desirability of a property.
The is a fine line between legal puffing and illegal
misrepresentation, and puffing is best avoided. An example
of puffing would be, "This home has the best view
in the city". Also known as puffery
Purchase offer
A document that lists the price, terms and conditions
under which a buyer is willing to purchase a property.
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