Glossary of Terms
Mortgage. Real Estate & Insurance
- Planned Unit Development (PUD)
- (1) Comprehensive development plan for a large land area. It usually includes residences, roads, schools, recreational facilities, commercial, office, and industrial area.
(2) Subdivision having lots or area owned in common and reserved for the use of some or all of the owners of the separately owned lots.
- Plat Map
- Map representing a piece of land subdivided into lots with streets, boundaries, easements, and dimensions shown thereon.
A map dividing a parcel of land into lots, as in a subdivision. For example, a Title/Commitment report and an appraisal report will provide a plat map of the subject property, which shows the location of the property within the subdivision.
- Points are a payment made to a bank as consideration for issuing a mortgage. These are usually based upon a percentage of the loan amount.
- Postwar Buildings
- Built after World War II, postwar buildings offer spacious, well-planned apartments with L-shaped living areas, wide picture windows, good closets, and air-conditioning. They rarely exceed 20 stories in height.
- PRELIMINARY TITLE REPORT (PRELIM)
- A report showing all current claims against a property before a sale or loan transaction and identifying those items that must be removed to obtain a 1st lien position. After completion of the transaction, a title insurance policy is issued. Same as TITLE COMMITMENT.
- PREPAID INTEREST CHARGE
- The portion of interest, added on at loan closing, which covers the time period between funding and the beginning of the first 30-day period covered by the first payment. For example, if the loan closed on 2/15, the first payment due on 4/1 retroactively pays interest from 3/1 to 4/1. The prepaid interest would cover the period from 2/15 to 2/28.
- Pre-payment Clause
- A Pre-payment Clause is a clause in the mortgage which gives a mortgagor the privilege of playing the mortgage indebtedness before it becomes due.
- Prewar Buildings
- Built prior to World War II, prewar buildings often have larger and wider rooms and commonly feature fireplaces, hardwood floors, high ceilings, and moldings.
- PRINCIPAL, INTEREST, TAXES & INSURANCE (PITI)
- The total of the monthly mortgage payment due, which includes all principal, interest, taxes and insurance.
- Proprietary Lease
- A Proprietary Lease is the lease issued by a co-operative corporation to each tenant/shareholder prescribing the right to occupy a specific apartment pursuant to guidelines mandated by the building.
- Pro Rate
- To allocate proportionate shares of income (such as rents) or an obligation (such as taxes and insurance premiums), paid or due, between seller and buyer at closing.
- PROFIT AND LOSS STATEMENT (P&L)
- A statement documenting business revenues and expenses for a specified time period to establish whether a business gained a profit or suffered a loss.
- Planned Unit Development. A real estate project in which each unit owner has title to a residential lot and building and a non-exclusive easement on the common areas of the project. The owner may have an exclusive easement over some parts of the common areas (for example, a parking space).
- Purchase-Money Mortgage
- Mortgage given to the seller as all or part of the purchase consideration in exchange for property, most commonly used in land purchases, with prior rights over any subsequent lien, unless made subject to subordination.
- Purchase Money Transaction
- Acquisition of property through the payment of money or its equivalent.