Parcel - A piece of real property with its own distinct legal description.

Partnership - A legal relationship between two or more persons, each of whom may act as an agent for the partnership.

Passive Income - Income earned from a passive activity. It is taxed at a different rate than earned income.

Penalty - The money a party will have pay for violating part or all of the terms of a contract or breaking a law.

Per Annum - Each year.

Permit - A document issued by a government authority giving permission to proceed with some action.

Perpetuity - Never ending; forever.

PITI - See Principle, Interest, Taxes, Insurance.

Planned Unit Development (PUD) - A highly designed residential property project that commonly features relatively dense clusters of houses, that are usually surrounded by areas of commonly owned open space and recreational facilities maintained by a nonprofit community association.

Plat - A plan or survey map of a parcel of land.

Points - Charges in connection with a mortgage, calculated with reference to teh amount of the loan. One point is equal to one percent.

Portfolio Loan - A non-conforming loan that must be held by the original because it cannot be sold on the secondary market.

Power of Attorney (POA) - A document executed by one person(the principal) authorizing another person to act on their behalf for any legal purposes or for specifically defined tasks.

Preapproval - The practice of obtaining lender approval for a mortgage up to a specified amount before shopping for a property.

Prepayment Penalty - The fee charged for paying off a loan early within a specified period of time after the loan has closed.

Principal Balance - The current outstanding dollar amount owed on a loan.

Principal, Interest, Taxes, Insurance (PITI) - The monthly payments required by an amortizing loan, and may or may not have taxes and insurance escrowed. Used as a rough calculation in figuring a property's basic expenses.

Private Mortgage Insurance (PMI) - The insurance premium paid by a borrower to protect the lender against losses from loans with loan-to-value(LTV) ratios higher than 80%.

Pro Forma - The presentation of data, such as a balance of income statement, where the amounts are real or hypothetical. For example, a pro forma of a property might show the current rental rates, as well as increased market value of rental rates.

Probate - The process of verifying the validity of a will before a duly authorized court or person. Once validated, the probate court then administers the sale of property as directed by the will or as authorized by the court to settle any and all financial obligations.

Promissory Note - A promise to pay a specific sum to a specific person under specific terms.

Prorate - The process of determining ones portion, usually in reference to income or expenses for a property.

Purchase Money Mortgage - A mortgage that secures a note written on a loan used for the purchase of a property.

Purchase Subject to Mortgage - A purchase in which the purchaser agrees to continue making the monthly mortgage payments on an existing mortgage and the original borrower remains liable if the purchaser does not make the payments as agreed.