PITI:
Real estate industry jargon, an acronym for Principal, Interest, Taxes, and Insurance.

Plat:
A map showing actual or planned features, such as streets and individual building lots.

PMI:
Acronym for Private Mortgage Insurance. PMI is the amount paid by a mortgagor for mortgage insurance, to a government agency such as the Federal Housing Administration (FHA) or to a private Mortgage Insurance (MI) company.

Points:
A one-time charge by the lender for originating a loan. A point is one percent (1%) of the amount of the mortgage.

Positional Negotiation:
Negotiation where either party maintains a fixed position of what they will accept.

Pre-Approval:
Preliminary recommendation by a lender for a borrower's mortgage application at a certain maximum amount and rate.

Pre-Approved for Financing:
Preliminary recommendation by a lender for a borrower's mortgage application at a certain maximum amount and rate.

Prepaid Interest:
Interest collected at closing due from the day of closing until the first of the month.

Prepaid Items:
Charges paid on behalf of the buyer at the time of closing that will be due later. These include homeowner's association dues, insurance and tax reserves, prepaid interest, and more.

Prepayment:
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from the owner's decision to pay off the loan in full, a sale of the property or a foreclosure. In each case, payment occurs before the loan is fully amortized.

Pre-Qualification:
Preliminary recommendation by a lender that a buyer will qualify for a specific mortgage amount based on information provided by the buyer alone and not verified through other sources.

Principal:
The mortgage loan amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage loan.

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Private Mortgage Insurance:
The amount paid by a mortgagor for mortgage insurance, to a government agency such as the Federal Housing Administration (FHA) or to a private Mortgage Insurance (MI) company.

Property Inspection:
Refers to an inspection of property performed by certified property inspectors at the buyer's request. Typically, this inspection is done right after the property goes under contract.

Property Tax:
A fee levied against the owner of real property.

Property Taxes:
Fees levied against the owner of real property.

Property Type:
A type of particular real estate or land. For example, single family, multi-family, highrise and more.

Purchase Agreement:
A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions specified in writing and signed by both parties. Also known as an Agreement of Purchase, Contract of Purchase, or Sales Agreement according to location or jurisdiction.

Pyramid of Value:
Pricing theory that says that the number of buyers willing to buy a property is inversely proportionate to the price.

Definitions are intended to be informational only. Please be advised that real estate practices vary from state to state and market to market. The information contained herein does not constitute legal advice. It is recommended that you consult with a qualified real estate attorney who can advise you specifically with respect to the requirements in your market.