Dictionary
P
- partial amortization
A loan repayment scheme in which the term is shorter than the amortization period. Whereas the loan payments will be calculated as if the loan will be paid back over the full amortization period, at the end of a specified term the outstanding balance is due and payable.
- partnership
See General Partnership and Limited Partnership.
- patent defect
A defect which is plainly visible or which can be discovered during the course of a reasonable inspection.
- payment
A periodic instalment that is made to service a debt. For an interest-only loan, the payment consists of interest; for a constant payment loan, the payment consists of interest and principal.
- percentage lease
A lease agreement which specifies that the tenant will pay the Landlord:
- periodic rate
The interest rate which is charged per compounding period (for example, per month or per day).
- periodic tenancy
A tenancy which automatically renews itself on the last day of the term for a further term of the same duration until terminated by either party.
- physical depreciation
The loss in value due to wear and tear (e.g., peeling paint) which may be curable or incurable. See Curable Depreciation and Incurable Depreciation. Compare to Functional Depreciation.
- pooling agreement
An agreement between investors who have a direct ownership in real property to share revenues and expenses generated by individual rental units.
- portable mortgage
A borrower can transfer the terms, conditions and interest rate of his or her current mortgage to the home the borrower would like to purchase.
- possession date
Date on which the purchaser is entitled to possession of the property.
- power of attorney
A document conferring authority to one person to act as another's agent on his or her behalf.
- power of sale
A clause inserted into a mortgage giving the mortgagee the right and power, on default in the payment of the debt secured, to advertise and sell the mortgaged property at public auction to satisfy the mortgage debt, without the necessity of foreclosure proceedings.
- prepayment
The act of fully or partially paying off the outstanding balance of a loan at any point during the term of the loan at a time earlier than set out in the contract.
- present value
The current equivalent of a future dollar amount.
- principal
That portion of the original amount borrowed which still has to be paid back to the lender.
- private law
The law that deals with disputes between two or more individuals.
- private nuisance
A legal term for wrongfully allowing the escape of injurious things onto another person's land or the wrongful disturbance of an easement or other interest granted over land.
- pro forma statement
A financial statement which shows expected future revenues and expenses.
- procedural law
The part of law which sets out the methods of determining and enforcing rights as between parties.
- profit a prendre
A right to take the produce or part of the soil from the lands of another. For example: minerals, oil, stones, gravel, etc.
- profit and loss statement
See Income Statement.
- property insurance
A guarantee to the registered owner or mortgagee of an interest in land that after a specified hazard (for example, a fire) the value of the interest in land can be restored.
- proprietorship
A business enterprise that is owned by a single owner who assumed unlimited liability. The proprietorship is not a taxable entity; the profits or losses of the business are reported on the owner's personal income tax return.
- public law
The law that regulates disputes between individuals and the public as a whole (i.e., the state). The term "public" may be: (i) general (applying to all persons within the jurisdiction); (ii) local (applying to a geographical area); (iii) special (relating to an organization or authority charged with a public interest).
- public nuisance
A legal term for some unlawful act or omission which endangers the safety or comfort of the public or some section of the public.
- purchaser's statement of adjustment
A closing statement in a real property transaction which indicates the balance of cash required from the purchaser to complete the transaction. See also: Closing Statement.