Glossary - P

Panel (1)
A section or division of a wall, ceiling or flat piece of building material that forms part of the surface of a wall, door or cabinet.

Panel (2)
Electrical distribution box with circuit breakers, fuses and terminals to which household wiring is connected.

Panel door
A door with a frame of horizontal rails and vertical stiles that surround raised or recessed panels.  A type of construction that allows a door to expand and contract with changes in moisture and weather without cracking or warping.

Paneling
Strips of wood or wood-like material applied as a finish to a wall.

Parcel
An officially described piece of land.

Parget
A coating applied to a foundation wall to prevent water leakage.

Parking strip
The strip of grass between the sidewalk and the street in front of a house.

Particleboard
A board composed of wood chips glued together under pressure.  Particleboard is similar to chipboard but has a higher density.

Partition
Any kind of structure dividing one room or space from another.

Partnership
Unmarried individuals who buy a piece of property have several options, such as a live-in partnership (in which both buyers share the residence) or a shared-equity partnership (one buyer lives in the home and the other is an investor in the property).

Party wall
A wall built along the boundary between two properties.

Pass-through
An opening in a wall between the kitchen and breakfast or dining room used to pass dishes.

Passive loss
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.

Patent defect
A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.

Patio
An interior courtyard or a paved backyard area.

Payment cap
A limit on the amount a monthly payment can increase on an adjustable rate mortgage.

Payment Change Date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the adjustment date.

Pediment
Peaked, rounded or other decorative panel above a doorway.

Per-diem interest
Interest charged or accrued daily.

Percolation test
A test used to determine the ability of soil to accommodate a septic system.

Perennial
Any plant that produces leaves, flowers and seeds from year to year.

Pergola
An arbor with an open roof of rafters supported by posts or columns.

Periodic Payment Cap
A limit on the amount that payments can increase or decrease during any single adjustment period.

Periodic Rate Cap
A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.

Personal property
Any movable property in a house such as furniture or appliances.

Photoelectric switch
A switch that turns lights or other electrical devices on or off depending upon the light.

Pier
A rectangular masonry support column.

Pigtail
A short wire connected to another wire, usually with a wire nut.

Pigtail cord
A short electrical cord with an integral plug designed to be attached to an appliance.

Pilasters
Decorative vertical columns attached to the wall or frame at each side of a doorway.

Pilot
The flame or electronic control that ignites gas or oil burners.

Pilot light
A small, continually burning gas flame inside a gas-fired water heater, dryer, range or similar appliance.  This flame ignites the appliance's gas burner.

Pipestem lot
A lot connected to the street by a narrow strip of land.

Pitch
The slope of a roof.  Pitch is the ratio of vertical rise to horizontal run.

PITI (principal, interest, taxes, and insurance)
A payment amount calculated by a mortgage lender to include the total payment of all principal, interest, taxes and insurance due monthly.

Planned community
Any town or neighborhood built with certain guidelines or goals in mind.

Planned unit development (PUD)
A residential project that features relatively dense clusters of houses which are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association.

Plaster
A labor-intensive wall finish consisting primarily of lime, sand and water.

Plat book
A public record containing maps showing the division of streets, blocks, and lots.  Also indicates the measurements of the individual parcels.

Plate
The bottom or top piece of a wall.

Pledged Account Mortgage (PAM)
A type of mortgage that is tied to a pledged savings account and this fund (plus earned interest) is gradually used to reduce mortgage payments.

Plenum
A heat distribution box on a furnace or central air-handling unit.

Plottage

The increase in value or utility of land resulting from the consolidation (assemblage) of two or more adjoinng parcels into one larger lot

Pocket door
A sliding door that recesses into the wall when opened.

Point
Fees charged by a lender to provide a lower interest rate.  One point equals one percent (1%) of the loan amount.  Also referred to as a discount point.

Porch
A structure that can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.

Porte-cochère
A porch-like roof extending over a driveway.

Portico
A porch supported by a row of columns.

Possession
A buyer officially takes possession of a house upon signing the closing papers and receiving the keys.

Power of attorney
A document that authorizes an individual to act on behalf of someone else.

Pre-approval
A thorough assessment made by a lender of a potential borrower's ability to pay for a home and a confirmation of the amount to be borrowed.  The completion of a loan application is necessary to close the loan.

Pre-approval letter
A letter from a lender that states the amount of money a potential buyer can obtain.

Pre-sold home
A home that is sold before it is built.

Prepaid expenses
Expenses including taxes, insurance, and assessments that are paid before the due date.

Prepaid fees
Funds collected by the lender from the borrower to pay certain recurring items in advance, including interest, property taxes, hazard insurance and, if applicable, private mortgage insurance (PMI).

Prepaid interest
Interest paid before it is due.

Prepayment penalty
A penalty that a lender may impose on a borrower who pays a loan off before its expected end date.

Prequalification
A lender's preliminary assessment of a buyer's ability to pay for a home and an estimate of how much the buyer may borrow.

Pressure relief valve
A safety vent that relieves excess pressure in a water heater.

Price range
The upper and lower limit of what a buyer is willing to pay for a home.

Primer
The initial coat of paint or sealant applied to a surface to prepare it for painting.

Principal
The amount of money originally borrowed in a mortgage, minus any payments made subsequently.

Principal paid over life of loan
The sum of scheduled principal payments calculated by the lender to equal the face amount of the loan.

Principle of conformity
The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to other houses in the neighborhood.

Principle of progression
An appraisal term which states that real estate of lower value is enhanced by the proximity of higher end properties.

Principle of regression
An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of lower-end properties.

Privacy fence
A structure erected between two pieces of property.

Private mortgage insurance (PMI)
A form of insurance required by a lender when the borrower's down payment or home equity percentage is less than 20 percent of the home value.

Probate
The process of establishing the validity of a will before a duly authorized court or person.  Once validity is confirmed, the probate court then administers the sale of property as directed by the will or as authorized by the court to settle any financial obligations.

Processing fee
A fee charged by some lenders for gathering information necessary to process the loan.

Procuring cause
Legal term used to determine whether a broker is entitled to a commission.

Production home
Homes that are mass-produced by one builder.

Programming
A written summation by an architect of a project's design objectives, constraints, and criteria.

Progression

An appraisal principal that states that, between dissimilar properties (a smaller home surrounded by larger homes with more amenities) that the value of the lesser home will be favorably impacted by the surrounding better quality properties.

Project budget
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.

Property line
The official dividing line between properties.

Property tax
Tax paid on privately owned property.  Property taxes are usually paid semiannually, or monthly if the lender requires.  The amount is based on local tax rates and assessed property value.

Property tax deduction
The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.

Property value
The value of a piece of property, based on the price a buyer will pay at a given time.

Punch list
A list compiled by a buyer prior to a sale detailing items to be fixed before closing.

Purchase agreement
A document that details the purchase price and conditions of the transaction.

Purchase contract
A legal document that binds a buyer to purchase a piece of property for a set price and also binds the seller to sell that property to the buyer.

Purchase-money mortgage (PMM)
A mortgage obtained by a borrower as partial payment for a property.