Real Estate Glossary - Letter P

Package loan

A mortgage loan that can be secured for the purpose of purchasing a home and improving the property as well.

Panic selling

Widespread selling of properties after market prices suddenly decline sharply.

Paramount title

The title in which ownership is superior or stronger compared to other claims.

Parcel

A piece or extended area or tract of land.

Partial reconveyance deed

A deed in which a provision exists that allows a piece of land to be freed from any encumbrances.

Partial release clause

A provision in a trust deed that allows a part of the real property to be freed from the lien upon paying of a certain amount of the debt.

Partially amortized loan

A loan in which only a certain portion of the loan is amortized while the rest is considered as straight term loan.

Participation loan

A mortgage loan provided by more than one lender and where profits and losses are shared based on the portion of the loan each of the lenders owns.

Party or parties

Refers to the person or persons who enter a real estate transaction as a principal player like buyer, lender, borrower or seller.

Payback period

The duration in time it takes for investors to regain capital and earn revenues/profit.

Payment adjustment date

The date in which the principal and interest payment made by borrower of an adjustable rate mortgage loan changes.

Payment cap

A provision typical in adjustable rate mortgages that limits any increases in the amount being paid by the borrower .

Payment rate

The rate in which a borrower under an adjustable rate mortgage repays the loan.

Payoff statement

A legal document in which a loan payoff is being considered and contains the loan account status, total amount due and interest rate; also known as letter of demand.

Penalty

Monetary punishment for non-fulfillment of contractual obligation established by law or authority.

Percentage lease

A lease of property where rental payment is calculated based on the tenant’s retail sales or profits.

Performance

The fulfillment of contractual obligations as required by law.

Periodic interest rate cap

The maximum increase or decrease in the interest rate of an adjustable rate mortgage loan at a certain period in time.

Permanent loan

A mortgage loan which has a minimum term of ten years and is fully amortized.

Plus interest

A loan payment option in which equal payments are made to reduce principal loan amount as well as accrued interest value.

Power of sale

A provision in a will, deed or trust that authorizes the sale or sale of a property according to the specific terms and conditions of the provision.

Prepayment clause

A provision in a mortgage agreement that gives the borrower the right to pay a part or all the mortgage debt before maturity.

Purchase agreement

A legal contract that details the sale of the property between buyer and seller.

Purchase and installment saleback

An agreement that allows the purchase of a property once construction is completed and at the same time, the immediate saleback of the property on an installment contract.

Purchase and leaseback

An agreement that involves a property being leased back to the seller as soon as a buyer purchased the property.