Package Mortgage – A mortgage commonly used in subdivision developments whereby chattels such as appliances are “packaged” into the mortgage along with the real property.

Partnership – A contract between two or more persons to carry on as co-owners of a business, and to share the profits in certain proportions.

Party Wall – A wall erected on the line between adjoining properties which are under separate ownership, for the use of both owners.

Periodic Tenancy – A lease running from period to period, such as week to week, or month to month.

Personal Property – Any property not real property; personalty.

Points – See Discount Points

Power of Attorney – A written instrument authorizing a person (an attorney in fact) to act as the agent on behalf of another to the extent indicated in the instrument.

Power of Sale – A provision in a mortgage permitting the lender, upon borrower’s default, to sell the secured property at public auction without need to have a court foreclosure.

Prepayment Clause – The clause in a mortgage or note stating the penalty, if any, for payment before it actually becomes due.

Prescription – An easement or title obtained by possession for a prescribed period; prescriptive rights.

Primary Money Market – The source of loan funds available directly to borrowers, whether for first or second mortgages; loan originations.

Prime Rate – The minimum interest rate charged by a bank on short term loans to its best clients.

Principal – The employer of an agent or broker; a sum of money owed as a debt upon which interest is calculated, not spelled Principle.

Probate – An action of the court to determine the validity and legality of a last will and testament.

Procuring Cause – The cause of a series of events which leads to the consummation of a sale.

Prorate – To divide or distribute proportionately; to divide monies, usually at time closing, proportionately between seller and buyer.

Purchase Money Mortgage – A mortgage on property given by a buyer, either to the seller or to a third party in order to secure a portion of the purchase price.