| PITI (Principal, Interest, Taxes, Insurance) |
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| When a buyer applies for 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. |
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| Panel |
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| 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. |
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| Paneling |
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| Strips of wood or wood material applied as a finish to a wall. |
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| Parcel |
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| An officially described piece of land. |
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| Parking strip |
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| The strip of grass between the sidewalk and the street in front of a house. |
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| Partition |
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| An interior wall. |
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| Partition |
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| Any kind of structure dividing one room or space from another. |
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| Partnership |
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| 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 in |
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| Passive loss |
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| A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate. |
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| Passive solar system |
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| A system that supplies solar heat without the use of electric fans or pumps. |
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| Patent defect |
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| A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch. |
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| Patio |
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| An interior courtyard or a paved backyard area. |
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| Payment cap |
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| A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage. |
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| Per-diem interest |
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| Interest charged or accrued daily. |
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| Percolation test |
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| A test used to determine the ability of soil to accommodate a septic system. |
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| Perennial |
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| Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies. |
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| Pergola |
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| An arbor with an open roof of rafters supported by posts or columns. |
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| Personal property |
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| Any moveable property in a house such as furniture or appliances. |
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| Pest-control inspection |
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| A common pest-control inspection is a termite inspection, which is required in some states, such as California. |
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| Pier |
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| A rectangular masonry support column. |
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| Planned communities |
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| The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals. |
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| Planned-unit development |
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| Residents own the home and the land, and share the use and financial responsibility for common areas. |
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| Plaster |
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| A labor-intensive and more costly wall finish. |
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| Pocket door |
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| A sliding door that retreats into the wall when opened. |
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| Point |
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| Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount. |
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| Porch |
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| The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence. |
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| Porte cochere |
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| A porch-like roof extending over a driveway. |
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| Portfolio lender |
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| 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. |
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| Portico |
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| A porch supported by a row of columns. |
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| Possession |
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| When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession. |
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| Power of attorney |
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| A document that authorizes an individual to act on behalf of someone else. |
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| Pre-approval letter |
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| A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain. |
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| Pre-sold home |
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| Homes that are sold before they are built. |
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| Prepaid expenses |
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| The costs for taxes, insurance and assessments paid before the due date. |
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| Prepaid interest |
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| 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. |
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| Prepayment penalty |
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| Lenders can impose a penalty on a borrower who pays a loan off before its expected end date. |
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| Prequalification |
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| Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home. |
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| Pressure relief valve |
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| A safety vent that relieves excess pressure in a water heater. |
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| Price range |
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| The range of how much a buyer is willing to pay for a home. |
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| Primer |
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| The initial coat of paint that is applied before the final topcoat. |
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| Principal |
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| The amount of money that the borrower owes on a mortgage. |
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| Principle of conformity |
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| 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. |
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| Principle of progression |
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| An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties. |
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| Principle of regression |
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| 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. |
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| Privacy fence |
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| A structure erected between two pieces of property. |
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| Private mortgage insurance (PMI) |
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| 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. |
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| Probate sale |
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| A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors. |
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| Production home |
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| Homes that are mass-produced by one builder in a project. |
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| Programming |
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| A written summation by an architect of a project's design objectives, constraints and criteria. |
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| Project budget |
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| A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services. |
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| Property line |
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| The official dividing line between properties. |
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| Property report |
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| A disclosure issued by the state when a time-share project is located or sold. |
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| Property tax |
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| Property taxes are calculated at about 1.5 percent of the current market value. |
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| Property tax deduction |
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| The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes. |
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| Property value |
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| The value of a piece of property is based on the price a buyer will pay at a certain time. |
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| Proration |
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| 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. |
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| Punch list |
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| Buyers compile a punch list during the final walk-through detailing items to be fixed before closing. |
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| Purchase agreement |
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| A document which details the purchase price and conditions of the transaction. |
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| Purchase-money mortgage |
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| A mortgage that a borrower obtains to acquire a property. |
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