Real Estate Terms - P


Las Vegas real estate home page

package mortgage

A loan secured against both land and chattels.

partial payment

A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan.


A court ordered division of property owned by two or more owners, may take the form of a physical division of the property or a forced sale and division of the proceeds.

party wall

A shared wall between two pieces of property. The shared wall generally stands on the property line.

payment change date

The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment adjustable-rate mortgage (GPARM). Generally, the payment change date occurs in the month immediately after the adjustment date.

paydown factor

The portion of cash subtracted each month from the principal of a mortgage security divided by the original principal of the security.

periodic payment cap

For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease during any one adjustment period.

periodic rate cap

For an adjustable-rate mortgage (ARM), 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

Any property that is not real property.


Principal, interest, taxes and insurance.

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 project or subdivision that includes common property that is owned and maintained by a homeowners' association for the benefit and use of the individual PUD unit owners.


A map dividing a parcel of land into lots, as in a subdivision. A plat book contains the plat maps for a given area.


One percent of the amount of the loan.

power of attorney

A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.

power of sale

Clause inserted in a mortgage or deed of trust giving the mortgagee (or trustee) the right and power, upon default in the payment of the debt secured, to advertise and sell the property at public auction.


A pre-approval typically means that the lender has verified your debt ratios, checked your credit rating, and reviewed income levels with paycheck stubs or last year's W-2s. Not a loan commitment.


Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.

prepayment penalty

A fee that may be charged to a borrower who pays off a loan before it is due.


The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan.

primary mortgage market

Lenders making mortgage loans directly to borrower's such as savings and loan associations, commercial banks, and mortgage companies. These lenders sometimes sell their mortgages into the secondary mortgage markets.

prime rate

The interest rate that banks charge to their preferred customers. Changes in the prime rate influence changes in other rates, including mortgage interest rates.


The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.

principle balance

The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance.

private mortgage insurance (PMI)

Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI when the buyer's down payment is less than 20%. However, at the point where the mortgage balance is less than 80% of the appreciated value of the home, the buyer may apply to have PMI removed from their payments. With appreciation rates like those seen in Las Vegas in recent years, this opportunity may occur sooner than expected.

procuring cause

A written promise to repay a specified amount over a specified period of time.

promissory note

A written promise to repay a specified amount over a specified period of time.

property manager

Someone who will manage a property for an investor and will find rental tenants, sign leases, collect rents and generally take care of the property.

property tax

An annual tax paid quarterly to one or more governmental jurisdictions based on the amount of the property assessment. Generally paid as part of the mortgage payment.


At a real estate sale and/or loan closing, the allocation of charge and credits to the appropriate parties.


see Planned Unit Development

punch list

An itemized list documenting incomplete or unsatisfactory items after the builder has has conducted a walk-thru inspection with the buyer.

purchase agreement

A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

purchase money mortgage

A mortgage offered by a home buyer as partial payment for the house. A form of seller financing.

purchase money transaction

The acquisition of property through the payment of money or its equivalent.