Real Estate Glossary
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Parcel - An officially described piece of land.
Partition - An interior wall.
Partnership - There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an investor in the property).
Passive solar system - A system that supplies solar heat without the use of a traditional heating system.
Patent defect - A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
Payment cap - A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
Percolation test - A test used to determine the ability of soil to accommodate a septic system.
Per-diem interest - Interest charged or accrued daily.
Panel - A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.
Paneling - Strips of wood or wood material applied as a finish to a wall.
Partition - Any kind of structure dividing one room or space from another.
Patio - An interior courtyard or a paved backyard area.
Perennial - Any plant that produces leaves, flowers and seeds from year-to-year, such as irises or peonies.
Personal property - Any moveable property in a house such as furniture or appliances.
Pier - A masonry support column.
P.I.T.I. (Principal, Interest, Taxes, Insurance) - When a buyer applies or a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
Pocket door - A sliding door that retreats into the wall when opened.
Point - Fees charged by lenders at the time a loan is originated. A point is equal to 1% of the total loan amount.
Porch - This structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
Portfolio lender - A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.
Possession - When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
Power of attorney - A document that authorizes an individual to act on behalf of someone else.
Pre-approval letter - A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
Pre-closing inspection - A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.
Prepaid expenses - The costs for taxes, insurance and assessments paid before the due date.
Prepaid interest - Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.
Prepayment penalty - Lenders can impose a penalty on a borrower who pays a loan off before its expected end date. Vermont does not have a prepayment penalty.
Pre-qualification - Many lenders will pre-qualify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
Pressure relief valve - A safety vent that relieves excess pressure in a water heater.
Price range - The range of how much a buyer is willing to pay for a home.
Primer - The initial coat of paint that is applied before the final topcoat.
Principal - The amount of money that the borrower owes on a mortgage.
Principle of conformity - The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform 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 proximity of too many lower-end properties.
Private mortgage insurance (PMI) - A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.
Property line - The official dividing line between properties.
Property tax deduction - The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
Property Transfer Tax - Vermont imposes a tax on the purchase of real estate. This tax is the obligation of the buyer.
Property value - The value of a piece of property is based on the price a buyer will pay at a certain time.
Pro-ration - Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.
Purchase and Sale Contract - A document which details the purchase price and conditions of the transaction.
