Dictionary

Purchase Money Mortgage (pmm)
Definition:    any new mortgage taken as part of the purchase price of real property by the seller Pronunciation: Used in a Sentence:    A purchase money mortgage is usually used to fill the gap between the buyer’s downpayment and a new first or assumed mortgage. Read more...
Puffing
Definition:  comments or opinions not made as representations of fact and thus not grounds for misrepresentation Pronunciation: Used in a Sentence:   A licensee’s boasting of a properties benefits is called puffing. Read more...
Prospectus
Definition:   a document prepared by a developer of 20 or more new condominium units that summarizes some of the major points contained in the condominium documents Pronunciation:   \prə-ˈspek-təs\ Used in a Sentence:   We were give a copy of the prospectus when we went to view the new condominium building. Read more...
Prorate
Definition:   the division of proportionate shares of charges and credits between the buyer and seller according to their period of ownership Pronunciation:   \(ˌ)prō-ˈrāt\ Used in a Sentence:   Some of the most common items to be prorated are interest on loans, insurance premiums, utilities and real property taxes. Read more...
Proprietary Lease
Definition:   a written lease in a cooperative apartment building, between the owner/corporation and the tenant/stockholder, in which the tenant receives the right to occupy a particular unit Pronunciation:   \prə-ˈprī-ə-ˌter-ē\ \ˈlēs\ Used in a Sentence:   A proprietary lease entitles the purchaser to the right to occupy the unit. Read more...
Property Report
Definition:   a disclosure document required under the federal Interstate Land Sales Full Disclosure Act Pronunciation:  \ˈprä-pər-tē\ \ri-ˈpȯrt\ Used in a Sentence:   Developers of 25 acres or more must provide buyers with a property report prior to signing the sale contract. Read more...
Property Manager
Definition:   a person who manages properties for various owners Pronunciation:   \ˈprä-pər-tē\ \ˈma-ni-jər\ Used in a Sentence:   A property manager is responsible for maintaining the property and managing the expenses. Read more...
Property Managment
Definition:   the area of the real estate profession that pertains to the leasing, managing, marketing and overall maintenance of the property of others Pronunciation:  \ˈprä-pər-tē\ \ˈma-nij-mənt\ Used in a Sentence:    The owner hired a property management firm to take care of his properties for him. Read more...
Property
Definition:   the rights or interests a person has in the thing owned but not, technically, the thing itself: bundle of rights including the right to possess, to use, to encumber, to transfer and to exclude. Pronunciation:  \ˈprä-pər-tē\ Used in a Sentence:   The two basic types of property are real property and personal property. Read more...
Promulgate
Promulgate
Definition: The formal act of announcing a statute or an administrative rule. Pronunciation: \ˈprä-məl-ˌgāt\ Used in a Sentence: The FREC may promulgate rules and regulations. Demystifying "Promulgate" in Florida Real... Read more...
Promissory Note
Definition:   a written promise to pay a certain sum of money to another at a future specified time Pronunciation:   \ˈprä-mə-ˌsȯr-ē\\ˈnōt\ Used in a Sentence:   A broker must disclose to the seller if a prospective buyer’s offer is in the form of a promissory note. Read more...
Progression
Definition:   a principal of appraisal that states that the value of an inferior property is enhanced by its association with superior properties of the same type Pronunciation:    \prə-ˈgre-shən\ Used in a Sentence: Read more...
Pro Forma Statement
Definition:  a projected annual operating statement that shows expected income and expenses Pronunciation: Used in a Sentence:   A pro forma statement should be clearly labeled as a projection and distinguished from operating figures. Read more...
Profit
Definition:   money that is made in a business after all the costs and expenses are paid Pronunciation:   \ˈprä-fət\ Used in a Sentence:   The company made a profit this year. Read more...
Professional Member
Definition:   a member of the FREC that holds either an active broker license or an active sales associate license Pronunciation:   \prə-ˈfesh-nəl\ \ˈmem-bər\ Used in a Sentence:    The broker from our agency was a member of the FREC board. Read more...
Professional Association (pa)
Definition:   a business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g., lawyer, doctor) Pronunciation:    \prə-ˈfesh-nəl\ \ə-ˌsō-sē-ˈā-shən\ Used in a Sentence:   Florida law requires that a professional corporation includes the words “professional association” or the abbreviation “PA” in the name. Read more...
Procuring Cause
Definition:   the person whose efforts are the cause of an executed sale contract, regardless of who actually writes the contract Pronunciation:   \prə-ˈkyu̇r, prō-\ Used in a Sentence:    To be a procuring cause, the broker must have started the chain of events that resulted in a sale. Read more...
Probation
Definition:   an administrative penalty imposed by the FREC that allows the licensee to continue to practice real estate under the guidance of the FREC Pronunciation:   \prō-ˈbā-shən\ Used in a Sentence:    The licensee was placed on probation as part of a disciplinary action. Read more...
Probable Cause
Definition:   reasonable grounds or justification for prosecuting Pronunciation:   \ˈprä-bə-bəl\  \ˈkȯz\ Used in a Sentence:  The investigators determined there was enough probable cause to file a lawsuit. Read more...
Private Mortgage Insurance (pmi)
Definition:   a special form of insurance used to insure all of the mortgage representing more than 80% of appraised value or purchase price Pronunciation:   \ˈprī-vət\ \ˈmȯr-gij\ \in-ˈshu̇r-ən(t)s\ Used in a Sentence:   Because we only put 10% down on the purchase of the house we were required to get PMI. Read more...
Principal Of Substitution
Definition:   an economic law of value; no prudent buyer will pay more for a property than the cost of an equally desirable replacement property Pronunciation:    \ˈprin(t)-s(ə-)pəl\ \ˌsəb-stə-ˈtü-shən\ Used in a Sentence:   The principal of substitution sets an upper limit of value for a property by establishing the cost of acquiring an equally desirable substitute property on the open market. Read more...
Principal Meridian
Definition:  imaginary line running north and south and intersecting a base line at a definite point, used by surveyors as reference to locate land under the government survey system Pronunciation:   \ˈprin(t)-s(ə-)pəl\ \mə-ˈri-dē-ən\ Used in a Sentence:   The Tallahassee principal meridian and base line are the reference lines that govern surveys in Florida. Read more...
Principal
Definition:   the party who hires a real estate broker to represent them in a real estate transaction; the amount of money borrowed in a mortgage loan, excluding interest Pronunciation:   \ˈprin(t)-s(ə-)pəl\ Used in a Sentence:   An agent is authorized to represent and act for the principal. Read more...
Primary Market
Definition:   the market in which lenders originate loans and make funds available directly to borrowers Pronunciation:   \ˈprī-ˌmer-ē\ \ˈmär-kət\ Used in a Sentence:   A commercial bank is an example of a lender found in the primary market. Read more...
Primary Lender
Definition:   a financial institution such as a savings association or bank, that makes mortgage loans directly to borrowers Pronunciation:   \ˈprī-ˌmer-ē\ Used in a Sentence:   We used our local bank as the primary lender for our mortgage. Read more...
Prima Facie Evidence
Definition:   a legal term used to refer to evidence that is good and sufficient on its face to establish a given fact or prove a case; at first view Pronunciation:   \ˌprī-mə-ˈfā-shə\ \ˈe-və-dən(t)s\ Used in a Sentence:   Unless it is contradicted, prima facie evidence proves a case. Read more...
Price-fixing
Definition:   the illegal practice of conspiring to establish fixed prices or fees for services rendered or goods sold; brokers conspiring to establish a standard commission rate Pronunciation: Used in a Sentence:   Brokers setting a fixed commission rate is an example of price-fixing. Read more...
Price
Definition:   the amount of money  actually paid for an item in a transaction Pronunciation: Used in a Sentence:   The actual sale price of the house was $475,000. Read more...
Present Value
Definition:    the worth of all future benefits of an investment in terms of today’s dollars Pronunciation: Used in a Sentence:   When comparing the two properties we reviewed the present value of both to determine which would be the better investment. Read more...
Prepayment Penalty
Definition:   the amount set by the creditor as a penalty to the debtor for paying off the debt before it matures Pronunciation:  \(ˌ)prē-ˈpā-mənt\\ˈpe-nəl-tē\ Used in a Sentence:   A prepayment penalty is charged by a lender to recoup a portion of interest the lender planned to earn when the loan was made. Read more...
Prepayment Clause
Definition:   a provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of time without penalty Pronunciation:   \(ˌ)prē-ˈpā-mənt\ \ˈklȯz\ Used in a Sentence:   Since we had a prepayment clause in our mortgage we were able to pay off our mortgage early without any penalty. Read more...
Pre-closing Inspection
Definition:   a final walk-through with the sales associate to verify that any repairs have been completed and the property is in good condition Pronunciation:   \in-ˈspek-shən\ Used in a Sentence:    We had the pre-closing inspection before going to the bank for the closing. Read more...
Power Of Attorney
Definition:   a written instrument authorizing a person to act as the agent on behalf of another who may not be present Pronunciation:  \ˈpau̇(-ə)r\ \ə-ˈtər-nē\ Used in a Sentence:   When my husband could not be at the closing he designated me as his power of attorney to sign the paperwork. Read more...
Potential Gross Income (pgi)
Definition:   the total annual income a property would produce with 100% occupancy and no collection or vacancy losses Pronunciation:   \pə-ˈten(t)-shəl\ \ˈgrōs\\ˈin-ˌkəm\ Used in a Sentence:    Because the apartment building had a high PGI we decided to purchase it. Read more...
Positive Leverage
Definition:   when the benefits from borrowing funds exceed the costs of borrowing them Pronunciation:   \ˈpä-zə-tiv, ˈpäz-tiv\ \ˈle-və-rij\ Used in a Sentence:    An investor wants an investment property that will produce a cash flow in excess of the cost of borrowing the funds, or a positive leverage. Read more...
Policy Manual
Definition:   the notebook of written rules and regulations that set desired standards and procedures in an office Pronunciation: Used in a Sentence:   It is important that a broker has a policy manual in the office so that agents know what is expected of them. Read more...
Police Power
Definition:   the authority of government to protect the property, life, health and welfare of its citizens Pronunciation: Used in a Sentence:   An example of police power is the right to regulate land use through a general plan and zoning. Read more...
Point Of Contact Information
Definition:   any means by which to contact the brokerage firm or individual licensee including mailing address, physical street address, email address, phone number or fax number. Pronunciation: Used in a Sentence:   Our agent gave us her point of contact information so we could contact her with to arrange showings. Read more...
Point Of Beginning (pob)
Definition:   the starting point in a metes-and-bounds description of property; usually a street intersection or a specific monument Pronunciation: Used in a Sentence:   A legal description must always return to the point of beginning to describe the area accurately. Read more...
Plottage Value
Definition:   the increased usability and value resulting from the combining or consolidating of adjacent lots into one larger lot Pronunciation:   \ˈplä-tij\ \ˈval-(ˌ)yü\ Used in a Sentence:    The plottage value of the three smaller parcels increased when they were combined together. Read more...
Planning Commission
Definition:    an official agency usually organized on the city, county, or regional level to develop a master plan and control the use, design and development of land Pronunciation:   \ˈplænɪŋ\ \kə-ˈmi-shən\ Used in a Sentence:   The developer had to submit his plans to the planning commission for approval. Read more...
Planned Unit Development (pud)
Definition:   a residential project with mixed land uses and high residential density Pronunciation: Used in a Sentence:    Because the buildings are usually clustered together in a PUD, there is more green area left open for parks and recreation. Read more...
Plaintiff
Definition:   a person who sues another person  or accuses another person of a crime in a court of law Pronunciation:   \ˈplān-təf\ Used in a Sentence:    Adam Smith was the plaintiff in the case filed against Bluebird Realty. Read more...
Petition For Review
Definition:   a formal request to a court of appeal asking it to examine the record of the proceedings in a specific case Pronunciation:   \pə-ˈti-shən\ Used in a Sentence:   The developer filed a petition for review over the change in zoning. Read more...
Personal Representative
Definition:  title given to an individual designated in a will or appointed by a probate court to settle the estate of a deceased person. Pronunciation:   \ˈpərs-nəl, ˈpər-sə-nəl\ \ˌre-pri-ˈzen-tə-tiv\ Used in a Sentence:   Mr. Greene’s nephew was designated in his will to act as his personal representative upon his death. Read more...
Personal Property
Definition:   tangible and movable property (transferred by a bill of sale); property not classified as real property Pronunciation:   \ˈpərs-nəl, ˈpər-sə-nəl\ \ˈprä-pər-tē\ Used in a Sentence:    All personal property included in the sale should be identified in the contract for sale. Read more...
Personal Assistant
Definition:   an individual hired by a licensee to perform administrative tasks associated with real estate transactions.  The tasks will determine if the assistant must be licensed. Pronunciation:  \ˈpərs-nəl, ˈpər-sə-nəl\ \ə-ˈsi-stənt\ Used in a Sentence:   Mary hired a personal assistant for her agency to help with answering the phone and setting up appointments. Read more...
Performance
Definition:   point when a party or parties to a contract fulfill the promises or obligations in the contract Pronunciation:   \pə(r)-ˈfȯr-mən(t)s\ Used in a Sentence:    The full performance of each and every contract condition is necessary to terminate a contract. Read more...
Per Diem
Definition:  for each day or by the day, an allowance for daily expenses Pronunciation:   \(ˌ)pər-ˈdē-əm\ Used in a Sentence:   We were allowed a per diem of $50 for our expenses during our business trip. Read more...
Percentage Lease
Definition:   a lease whose rental is based on a percentage of the monthly or annual gross sales made on the premises Pronunciation:   \pər-ˈsen-tij\ \ˈlēs\ Used in a Sentence:    When we opened the new store we signed a percentage lease with the landlord. Read more...