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Ever had that moment when a real estate definition leaves you with more questions than answers, causing a wave of irritation? Yeah... us too.

Common Joe 'n Jane Real Estate Wiki

Your down-to-earth guide to mastering real estate exam terms and concepts! We've stripped away the industry jargon and complex language, breaking down intricate ideas into bite-sized, easy-to-digest pieces for all the common "Joe 'n Jane's" out there.

Parallel (base line)
A "Parallel (base line)" is like an imaginary line drawn on a map that helps to set up a grid for measuring land. It runs from East to West, while another line called the principal meridian goes from North to South. Think of it like a... (Read more)
Parol Contract
A "Parol Contract" is an agreement between people that is made by talking, rather than being written down. Even though it's not written, it can still be legally binding if it's made in the right way. However, it can be harder to prove what... (Read more)
Partition Suit
A partition suit is a legal action taken to divide or separate co-owned real estate between two or more parties who cannot agree on how to use or dispose of... (Read more)
Party Wall Easement
A party wall easement is an agreement between the owners of two adjacent properties to share an improvement, such as a wall or fence, that is built along the boundary line between their properties. They agree not to do anything that would harm... (Read more)
Percentage Lease
A percentage lease is a type of commercial lease where the tenant pays a base rent plus a percentage of their gross sales to the landlord. This type of lease is commonly used in retail and... (Read more)
Performance (Contract related)
Performance in a real estate contract refers to the fulfillment of the terms and conditions outlined in the agreement by all parties involved. This means that all parties involved must meet their obligations as specified in the contract to... (Read more)
Periodic Tenancy
A periodic tenancy is a type of lease agreement in which the tenant rents a property for a specific period of time, typically on a month-to-month basis. The lease automatically renews at the end of each period until either the tenant or... (Read more)
Personal Property
"Personal property" refers to things you own that can be moved around, like your clothes, furniture, or electronics. It's different from "real property," which includes land and buildings that can't be moved. When you buy or sell a house,... (Read more)
Physical Deterioration
Physical deterioration in real estate refers to the condition of an improvement or property that has deteriorated or degraded over time due to natural wear and tear, environmental factors, or lack... (Read more)
Planned Unit Development (PUD)
PUD, short for Planned Unit Development, is a type of neighborhood where houses, parks, and other facilities are designed together in one big plan. Think of it like a big puzzle, where each piece is a building or space, and they all fit together... (Read more)
A plat is a map that shows how a big piece of land is divided up into smaller pieces, like a puzzle. It's like a blueprint for a neighborhood, showing where each house, street, and park... (Read more)
Plottage refers to the increase in value that can occur when multiple pieces of land are combined into a larger, contiguous parcel. This increase in value is often due to the fact that a larger parcel can be more valuable or useful than... (Read more)
In real estate, a point refers to a percentage of a loan amount that a lender charges as a finance fee. One point is typically equal to one percent of the... (Read more)
Point of Beginning (POB)
In real estate, the Point of Beginning (POB) is the starting and ending point in a metes and bounds legal description. This is the point from which the measurements and boundaries of a piece of property are described... (Read more)
Police Power
In real estate, Police Power refers to the legal authority of a state or local government to create and enforce laws and regulations related to the public's health, safety, and welfare as it relates to real property. This power allows governments... (Read more)
Potential Gross Income
Potential Gross Income refers to the maximum amount of revenue that a property could generate before accounting for vacancy, collection loss, and expenses. This includes the total rent that could be earned if the property were fully occupied... (Read more)
Potential Gross Income Multiplier (PGIM)
Potential Gross Income Multiplier (PGIM) is a ratio that compares a property's potential gross income to its asking price. This ratio is used to estimate the value of an income-generating property and to compare the value of... (Read more)
Power of Attorney
In real estate, a power of attorney can be used to establish a universal agency relationship between the principal (the property owner) and the agent (the person granted power of attorney). This allows the agent to act on the principal's behalf in... (Read more)
Present Value
In real estate, present value refers to the current value of a future amount of money after accounting for the impact of inflation and the time value of money. It takes into account the idea that money received today is worth more than the... (Read more)
Present Value of $1
In real estate, the present value of $1 refers to the current value of a future payment of $1, after accounting for inflation and the time value of money. It's a tool used to calculate the present value of future cash flows, such as rental... (Read more)
Present Value of $1 Per Period
"Present Value of $1 Per Period" means finding out how much a series of equal dollar payments, like getting $1 every month or year, are worth today. It helps you understand the value of money you'll get in the future, but in... (Read more)
Price Fixing
Price fixing is when two or more people or businesses agree to set a price for a product or service instead of letting the market determine the price. This is illegal and can lead to higher prices for consumers and less competition in... (Read more)
Price Mechanism
The price mechanism is a way for buyers and sellers to determine the price of a product or service in a market. It works by using supply and demand to set the price, which can change based on the amount of goods or services available and the... (Read more)
Primary Lending Mortgage Market
The Primary Lending Mortgage Market refers to the market where borrowers can obtain a mortgage loan directly from a lender, such as a bank or credit union. This market is where the lenders provide loans to potential homebuyers who want to purchase... (Read more)
Primary Mortgage Market
The Primary Mortgage Market is the place where homebuyers go to get a loan to purchase a property. It's where banks and other financial institutions lend money to borrowers who want to buy... (Read more)
In the context of real estate, "principal" has two main meanings:/bb/ 1. The employer in an agency relationship, to whom the agent owes fiduciary duties./b/ 2. The loan balance to which interest charges... (Read more)
Principal Meridian
In the context of land surveying and real estate, a "principal meridian" is a designated line that is used as a reference point to help identify the location of a property. It is one of the key components of the rectangular survey system that... (Read more)
Prior Appropriation
"Prior appropriation" is a legal doctrine that governs the use of water resources. It is based on the idea that the first person to use a particular water source has a priority right to continue using that water source, even if others come... (Read more)
Priority (Liens)
Lien Priority refers to the sequence in which various individuals or organizations, who are owed money, receive payment when a property is sold. This order helps determine the order in which creditors are paid, starting with the one with the... (Read more)
Private Grant
A private grant is when a person or a group (private party) willingly gives away ownership of a piece of land or property to someone else. It's like when you give away something you own to a friend as... (Read more)
Private Mortgage Insurance (PMI)
"Private Mortgage Insurance (PMI)" is a type of insurance that a borrower can purchase when they take out a mortgage loan. It helps protect the lender in case the borrower is unable to make their... (Read more)
Probate is a legal process that happens after someone dies. It helps to make sure the deceased person's property and belongings are distributed correctly, based on their will (if they have one) or according to the law. It also makes sure any... (Read more)
Procuring Cause
Procuring cause is a term used in real estate to describe the person or action that played a key role in making a sale happen. It usually refers to the real estate agent who first found a customer who was ready, willing, and able to buy a... (Read more)
"Progression" is a term used in real estate to describe how a property's value can be influenced by the value of other properties in the same area. When a property is located near or associated with higher-value properties, its own value... (Read more)
Promissory Note
A "promissory note" is a legal document that outlines a promise to pay back a loan. It includes details such as the amount of the loan, the interest rate, and the... (Read more)
"Property" refers to anything that a person or entity owns. In the context of real estate, property usually refers to land and the buildings or structures on... (Read more)
Property Management
"Property management" is the term used to describe the operation, control, and oversight of real estate properties. It involves managing the day-to-day activities of a property, such as maintenance, repairs, and... (Read more)
Property Operating Income Statement
A Property Operating Income Statement is a report that shows how much money a property, like an apartment building or a shopping center, makes and spends over a certain period of time. This statement helps the property owner understand if... (Read more)
Proprietary Lease
A proprietary lease is a special kind of lease or rental agreement that's used in cooperative housing. In a cooperative, instead of owning a specific apartment or unit, you actually own shares in the whole building, which is run by a... (Read more)
"Proration" is a term used in real estate to describe the process of dividing up expenses or income items between the buyer and seller at closing. It's a way of making sure that each party is responsible for paying their fair share of things... (Read more)
"Proximate" refers to the closeness or nearness of two or more items. In real estate, this term is often used to describe the distance between different properties, or the proximity of a property to certain amenities... (Read more)
Public Domain
"Public Domain" refers to information that is available to the public, and is not subject to any copyright or ownership restrictions. This includes things like government records, historical documents, and other materials that are considered part... (Read more)
Public Grant
A public grant is when the government gives someone permission to use or own a piece of land. This can happen when the government wants to encourage people to settle in a certain area or to use the land for a specific purpose, like farming... (Read more)
Public Law 101-73 (FIRREA)
"Public Law 101-73" refers to a federal law that was passed in order to change the way that financial institutions operate and create rules and regulations for real... (Read more)
Pur Autre Vie
"Pur Autre Vie" is a French term that means "for the life of another." In real estate, it's used to describe a type of ownership where someone has the right to use a property for as long as another person lives. When that person passes away,... (Read more)
Purchase Money Mortgage
A purchase money mortgage is a type of loan that a buyer gets directly from the seller to help them buy a property. Instead of borrowing money from a bank or a mortgage company, the buyer makes payments to the seller over time. This can be... (Read more)
Purpose (Appraisal)
In the context of a real estate appraisal, "purpose" refers to the reason or goal of the appraisal process. It's the specific value or outcome that the appraiser is trying to determine based on their analysis of the property. The purpose of... (Read more)