Business / Real Estate Glossary

Police Power: The inherent right of the state to regulate for the purpose of promoting health, safety, welfare, and morality. Police power gives the state the right to impose certain restraints on human c . . . View Full Definition

Pollution: Any substances in water, soil, or air that degrades the natural quality of the environment, offends the senses of sight, taste or smell, or causes a health hazard. The usefulness of the natu . . . View Full Definition

Pollution Prevention: Actively identifying equipment, processes, and activities which generate excessive wastes or use toxic chemicals and then making substitutions, alterations, or product improvements. Conservi . . . View Full Definition

Portfolio Loan: A loan originated and maintained by the lender and not sold in the secondary mortgage market.

Potentially Responsible Party (PRP): Any individual or company that is potentially responsible for or has contributed to a spill or other contamination at a Superfund site. Whenever possible, EPA requires PRPs to clean up sites . . . View Full Definition

Power-Of-Attorney: A written instrument authorizing a person, the attorney-in-fact, to act as the agent on behalf of another to the extent indicated in the instrument.

Power-Of-Sale Clause: A clause in a mortgage authorizing the holder of the mortgage to sell the property in the event of the borrowers default. The prodeeds from the public sale are used to pay off the mortgage d . . . View Full Definition

Preliminary Notice: Notifies a customer that work to be completed is subject to the lien rights of the contractor. Preliminary notice must be given prior to recording of a mechanics lien, and should be filed by . . . View Full Definition

Preliminary Public Report: Under the Subdivided Land Law the preliminary public report can be issued before the public report, and allows a subdivider to take reservations from buyers but not sell parcels.

Preliminary Report: A title report that is made before a title insurance policy is issued or when escrow is opened. A preliminary report or policy of title insurance reports only on those documents having an af . . . View Full Definition

Premium: A fee paid to an insurance company.

Premium (In Excess Of Par): A price paid for a security in excess of its face value.

Prepaid Items: On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.

Prepayment Penalty: The amount set by the creditor as a penalty to the debtor for paying off the debt before it matures, an early-withdrawal charge. The prepayment penalty is charged by the lender to recoup a p . . . View Full Definition

Prequalify: Determine the maximum loan amount a prospective buyer qualifies for prior to showing them properties. Failing to prequalify may result in wasted efforts showing the prospect properties they . . . View Full Definition

Prescription: Acquiring a right in property, usually in the form of an intangible property right such as an easement or right-of-way, by means of adverse use of property that is continuous and uninterrupt . . . View Full Definition

Present Worth: The discounted present-day value of money to be collected in the future.

Press Release: A news announcement written by a property manager or advertising specialist highlighting a propertys features. Sent to local newspapers and real estate magazines to promote a property.

Pressed Wood Products: Materials used in building and furniture construction that are made from wood veneers, particles, or fibers bonded together with an adhesive under heat and pressure.

Pressure Relief Valve: A valve used on hot water heating appliances to help keep the pressure in the heated tank or boiler from getting too high by allowing the relief of pressure from the valve.

Preventive Maintenance: Includes regularly scheduled activities such as painting and seasonal servicing of appliances and systems. Preventive maintenance preserves the long-range value and physical integrity of the . . . View Full Definition

Price Fixing: The practice of conspiring to establish fixed fees or prices for services rendered or goods sold. In recent years, the setting of attorney fees by local bar associations and commission perce . . . View Full Definition

Prima Facie: At first sight, on the first appearance, on the face of it, so far as can be judged from the first disclosure, presumably, a fact presumed to be true unless disproved by some evidence to the . . . View Full Definition

Primary Lenders: Originators of real estate loans including commercial banks, savings and loan associations and mutual savings banks.

Primary Mortgage Market: The mortgage market in which loans are originated and consisting of lenders such as commercial banks, savings and loan associations and mutual savings banks.

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