Real Estate Glossary P

Click on the beginning letter of the real estate term to find the definition.

A B C D E F G H I J L M N O Q R S T U V W Y

Partial Release Clause: A provision in a trust deed, mortgage or land contract that permits the borrower or buyer to secure the release of part of the property by complying with certain terms, such as the payment of a certain sum of money.

Partnership: A common form of joint ownership of a business.

Payee: Person or business that has the right to receive a payment or series of payments and is interested in selling that income stream for cash.(Also called the seller or client)

Payor: The person, company, or government responsible for making payments on an income stream.

Point: 1% of the principal amount of a loan. A lender often charges points when a loan is made, renewed or assumed, to raise the yield on the loan.

Portfolio: A group or package of income streams of the same type.

Power-of-sale clause: A clause in trust deeds and in some mortgages giving the trustee or mortgagee the right to sell the property that is security for the loan at public sale, without court procedure, if the debtor defaults.

Preliminary Title Insurance Report: A report by a title insurance company showing the condition of title to a property including liens, restrictions, etc.

Prepayment: To pay all or part of a debt before it is due.

Prepayment Clause: A provision in a note or deed of trust allowing the borrower to pay off all or part of the principal before it is due, with or without a prepayment penalty.

Primary Financing: The loan which has first priority; the loan which has its security instrument recorded first.

Principal: The capital amount of a loan, not including interest. The principal portion of an installment payment on a loan reduces the outstanding balance of the loan by the amount of the principal payment.

Principal Plus Interest: A loan for which the borrower makes a fixed principal payment each period and pays, in addition, interest on the unpaid principal amount of the loan.

Privately Held: Owed to a private individual or busniess rather than to a bank or other financial institution.

Profit and Loss Statement: A financial statement that shows a historical record of a business' income and expenses.

Promissory Note: A written promise to pay a specified amount to a specified party over a certain period of time.

Purchase Money Deed of Trust or Mortgage: A trust deed or mortgage given to secure all or part of the purchase price of real estate.