Glossary

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party wall

Wall erected on line between adjoining properties for the use of both properties.

patio home

A structure that sits on a lot, often with one outside wall of the structure sitting on the property line. Patio homes have no common structural walls with adjoining properties, but their zero lot line wall may form part of their neighbors backyard fence/wall. Also known as a garden home.

person

An individual, a partnership, or a corporation, foreign or domestic.

personal property

Property which is tangible, movable, and not fixed to the land. Also called chattel and personalty.

personalty

Personal property; chattel.

points

Fees paid to induce lenders to make mortgage loans at a particular interest rate. Each point is equal to one percent (1%) of the loan principal. Often called Discount Points.

power of attorney (POA)

A written authorization by a person to another person to act for him on his behalf.

prepayment penalty

A fee paid to the lender for paying the outstanding principle balance of a loan prior to the scheduled maturity date.

primary mortgage market

Lenders who originate loans and makes funds available directly to the borrowers.

prime rate

The interest, or discount rate charged by a commercial bank to its largest and strongest customers.

principal

The amount of money owed to the lender not including interest.

promissory note

a written promise by a person to pay a specific amount of money ("principal") to another, and should contain the repayment term and interest to be charged.

property taxes

Taxes that are paid yearly on real property. Property taxes are ad valorem, based on the assessed value of the real property.

pro-rate

To divide or distribute proportionally. At closing, various expenses such as taxes, insurance, interest, rents, etc. are prorated between the seller and buyer.

These terms and their presence on this site are not intended as, nor should they be used as, legal advice. You should always obtain advice from a licensed attorney for all legal matters.