PARCEL - A specific portion of a larger tract; a lot.
PARTIAL RELEASE - A clause found in a mortgage which directs the
mortgagee to release certain parcels from the lien of the
blanket mortgage upon the payment of a certain sum of money.
PARTICIPATION MORTGAGE - A mortgage in which the lender
participates in the income of the mortgaged venture beyond a
fixed return, or receives a yield on the loan in addition to the
straight interest rate.
PARTITION - The dividing of common interests in real property
owned jointly by two or more persons.
PARTNERSHIP - "An association of two or more persons to carry on
as co-owners a business for profit," as defined in the Uniform
Partnership Act, which is in force in a majority of the states.
PARTY WALL - A wall which is located on or at a boundary line
between two adjoining parcels and is used or is intended to be
used by the owners of both properties in the construction or
maintenance of improvements on their respective lots.
PENTHOUSE - An apartment located on the roof of a building, or
more commonly, an apartment on the top floor of a building.
PERCENTAGE LEASE - A lease whose rental is based on a percentage
of the monthly or annual gross sales made on the premises.
PERCOLATION TEST - A hydraulic engineer's test of soil to
determine the ability of the ground to absorb and drain water.
PERFORMANCE BOND - A bond, usually posted by one who is to
perform work for another, which assures that a project or
undertaking will be completed as per agreement or contract.
PERIODIC TENANCY - A leasehold estate which continues from
period to period, such as month to month, year to year. All
conditions and terms of the tenancy are carried over from period
to period,.
PERMANENT FINANCING - A long-term loan, as opposed to an interim
loan.
PERSONAL PROPERTY - Tangible and moveable; property which is not
classified as real property; chattels; personalty.
PIGGYBACK LOAN - A joint loan with two lenders sharing a single
mortgage.
PLANNED UNIT DEVELOPMENT (PUD) - A modern concept in housing
designed to produce a high density of dwellings and maximum
utilization of open spaces.
PLAT - A map or a town, section, or subdivision indicating the
location and boundaries of individual properties.
PLOTTAGE - The merging or consolidating of adjacent lots into
one larger lot, with the consequent result of improved usability
and increased value; also called assemblage.
POCKET LISTING - A listing which is retained by the listing
broker or salesperson, who does not make it available to other
brokers in the office or to other Multiple Listing Service
members.
POINT OF BEGINNING - The starting point in a metes and bounds
description of property.
POINTS - A generic term for a percentage of the principal loan
amount which the lender charges for making the loan; each point
is equal to one percent of the loan amount.
POLICE POWER - The constitutional authority and inherent power
of a state to adopt and enforce laws and regulations to promote
and support the public health, safety, morals and general
welfare.
PORTE COCHERE - A roofed structure extending from the entrance
of a building over an adjacent driveway to shelter those getting
into or out of vehicles.
POSSESSION - The act of either actually or constructively
possessing or occupying property.
POWER OF ATTORNEY - A written instrument authorizing a
person(the attorney-in-fact) to act as the agent on behalf of
another to the extent indicated in the instrument.
POWER OF SALE - A clause written into a mortgage authorizing the
mortgagee to sell the property in the event of default.
PREMISES - The subject property, such as the property which is
deeded or the unit that is leased.
PREPAID INTEREST - The paying of interest before it is due.
PREPAYMENT PENALTY - Amount set by the creditor as a penalty to
the debtor for paying off the debt prior to its maturity. The
prepayment penalty is charged by the lender to recoup a portion
of interest that he had planned to earn when he made the loan.
PREPAYMENT PRIVILEGE - The right of the debtor to pay off part
or all of the debt without penalty prior to maturity.
PRE-SALE - A pre-construction sale program by a condominium
developer who is required to sell a certain percentage of units
before a lender will commit to finance construction of the
project.
PRESCRIPTION - The acquiring of a right in property, usually in
the form of an intangible property right such as an easement or
right-of-way, by means of adverse use of property that is
continuous and uninterrupted for the prescriptive period.
PRESENT VALUE OF ONE DOLLAR - A doctrine which is based on the
fact that money has a time value. The present worth of a payment
to be received at some time in the future is the amount of the
payment less the loss of interest.
PRIME RATE - The minimum interest rate charged by a commercial
bank on short-term loans to its largest and strongest clients.
PRINCIPAL - The capital sum; interest is paid on the principal.
NOT spelled principle.
PRINCIPAL BROKER - The licensed broker directly in charge of and
responsible for the real estate operations.
PRIVATE MORTGAGE INSURANCE - A special form of insurance
designed to permit lenders to increase their
loan-to-market-value ratio, often up to 95 percent of the market
value of the property.
PROBATE - The formal judicial proceeding to prove or confirm the
validity of a will. The will is presented to the probate court,
and creditors and interested parties are notified to present
their claims or to show cause why the provisions of the will
should not be enforced by the court.
PROCURING CAUSE - That effort which brings about the desired
result, as in producing the buyer for the listed property.
PRO FORMA STATEMENT - A projection of future income and
expenses. PROMISSORY NOTE - An unconditional written promise of
one person to pay a certain sum of money to another, or order,
or bearer, at a future specified time.
PROPERTY - The rights or interests a person has in the thing
owned; not, in the technical sense, the thing itself. These
rights include the right to possess, to use, to encumber, to
transfer and to exclude, commonly called the "bundle of rights."
PROPERTY MANAGEMENT - That aspect of real estate devoted to the
leasing, managing, marketing and overall maintenance.
PROPERTY REPORT - A disclosure document required under the
federal interstate land sales act where applicable to the
interstate sale of subdivided lots.
PROPRIETARY LEASE - A written lease in a cooperative apartment
building, between the owner-corporation and the
tenant-stockholder, in which the tenant is given the right to
occupy a particular unit.
PRORATE - To divide or distribute proportionately.
PROSPECT - A person or corporation who may be interested in
buying or selling real property. The prospect does not become a
client until the parties establish a fiduciary relationship,
such as upon signing a listing contract or upon executing a
DROA.
PROSPECTUS - A statement distributed to describe, advertise and
give information on a business, venture, project or stock issue.
PUFFING - Exaggerated or superlative comments or opinions not
made as representations of fact and thus not a grounds for
misrepresentation. A statement such as "the apartment has a
fantastic view," is puffing because the prospective buyer can
clearly assess the view in each case.
PUNCH LIST - A discrepancy list showing defects in construction
which need some corrective work to bring the building up to
standards set by the plans and specifications.
PURCHASE MONEY MORTGAGE - A mortgage given to the seller as part
of the buyer's consideration for the purchase of real property,
and delivered at the same time that the real property is
transferred as a simultaneous part of the transaction.
Payson Utah Bank Foreclosures
