Glossary of Real Estate Terms "P"

Like many other industries, the real estate industry has its own unique language and vocabulary. Without some knowledge of this specialized language, you may find yourself a bit confused if you become involved in a real estate transaction.

Whether entering the real estate market for the first time or if you have invested before, this handy reference will provide an understanding of basic real estate words and phrases.


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P

Plat – Also called “plat map”. A map dividing a parcel of land into lots, as in a subdivision. A plat book contains the plat maps for a given area.

Point – Also called “discount points”. A fee charged by a lender (one point equals one percent; two points equals two percent, etc.) of the amount of the loan. Can be just a cost of the loan or can be an amount paid to reduce the interest rate during the term of the mortgage.

Premium – The amount payable for an insurance policy (title policy or homeowner policy).

Prescriptive Easement – A right to use another's property that is not inconsistent with the owner's rights and that is acquired by an open, notorious, adverse and continuous use for the statutory period (for example 20 years).

Principal – (1) A sum of money owed as a debt on which interest is payable. (2) A person who empowers another to act as his representative or agent. (3) The person having prime responsibility for an obligation as distinguished from one who acts as a surety or endorser.

Purchase Money Mortgage – A mortgage given by a purchaser to a seller on the subject property to secure payment for a part of the purchase price.




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