Real Estate Glossary
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prepayment penaltySome mortgage notes contain a prepayment clause that requires that the borrower pay a prepayment penalty against the unearned portion of the interest for any payments made ahead of schedule. | |
priceis determined by the principle of competition, which states that price or profit is set by buyers in the market competing for the same or similar products or services; or by sellers in a market competing for the same buyers. | |
Price fixingAn agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. | |
primary mortgage marketwhere consumers can shop for and ultimately receive a home loan. | |
principal1. One of the main parties to a transaction. For example the buyer and seller are principals in the purchase of real property. 2. In a fiduciary relationship, the person who hires a real estate broker to represent him or her in the sale of property. The phrase "principals only", often found in real estate ads, is meant to exclude real estate agents from contacting the owners of the property. 3. The capital sum. Interest is paid on the principal. An amortized payment includes interest and principal. | |
prior appropriationA concept of water ownership in which the landowners right to use available water is based on a government-administered permit system. | |
Private mortgage insurance (PMI)where the buyer purchases an insurance policy that provides the lender with funds in the event that the borrower defaults on the loan. | |
probatelegal process in which the court determines who will inherit a decedent's property and what the estate's assets are. | |
profit and loss statementAlso known as the income statement, this statement shows all income minus all expenses which equals the net operating income. | |