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GLOSSARY
Property value
How much a piece of real estate is worth based on the price a buyer and seller would negotiate.
Proportional tax
Proportional tax is an assessment system that calculates taxes at the same rate for all individuals within the tax jurisdiction. The U.S. and Canada do not use proportional taxes.
Proprietary lease
A proprietary lease is a property use arrangement provided by a corporation to a co-op owner. When an individual buys into a co-op building, the ownership arrangement gives the owner a certain number of shares in the co-op, along with a proprietary lease for one of the residences in the building.
Prorate
An agreement on how the property taxes are paid and handled depending on when the title changed hands.
Prudent-Person Rule
The Prudent-Person Rule is a legal concept that seeks to protect investors from advisors who employ risky investment strategies on behalf of their customers. Investment advisors are required to act with discretion and limit investment choices to securities that a reasonable or prudent person would buy for her own portfolio.
Public college/university
Public college/university is an institution of higher learning that's partially funded by the state. Public colleges and universities generally have much lower tuition rates, and are therefore more accessible to the general population.
Public record
Public record is a general term for legal documentation or property ownership information that's kept available for public review. Court records and certain documents pertaining to real estate transactions are often part of the public record.
Public Securities Association Standard Prepayment Model - PSA
Public Securities Association Standard Prepayment Model, or PSA, is a method of quantifying and planning for prepayment risk associated with a pool of mortgage loans backing a security issue. The model assumes that the rate of prepayments will gradually rise over the life of the mortgage loans.
Punch list
A punch list is an account of items that need to be addressed. In construction projects, punch lists are used to document unfinished items or items that need repair. Punch lists can also be used to document repairs that need to be made before a property sale is finalized.
Punitive rate
Punitive rate is a high interest rate charged by credit card issuers to accounts that are in bad standing. Punitive rate may also be called default rate, and may result from missed payments, or charges that are in excess of the credit line.
Purchase agreement
A contract in which the buyer and seller approve the price and other terms of the transfer of title. This contract is required when you apply for the loan. Also called an agreement of sale, a purchase contract or a sale contract.
Purchase contract
See Purchase agreement.
Purchase mortgage market
The purchase mortgage market is the portion of the mortgage origination industry that deals with home purchases, and doesn't include refinance mortgages.
Purchase option
A real estate agreement under which a portion of monthly rent may be used toward eventual purchase of the property. For automobiles, the portion of a lease agreement that establishes the amount the lease holder can pay in order to purchase the car when the lease terms are complete. The price is usually the residual value.
Purchase-money mortgage
A home loan that a borrower obtains to buy property and uses the property as collateral for the loan.