| Term | Definition |
|---|
| private mortgage insurance (PMI) | Default insurance on conventional loans, normally insuring the top 20%-25% of the loan and not the whole loan. |
| 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. |
| property taxes | Taxes that are paid yearly on real property. Property taxes are ad valorem, based on the assessed value of the real property. Each taxing authority multiplies this appraised value by its annual tax rate. Taxing authorities include local school districts, counties, cities, water districts, and other special tax districts. |
| PUD | Acronym - planned unit development. |
| puffing | Non-factual or extravagant statements and opinions made to enhance the perceived desirability of a property. The is a fine line between legal puffing and illegal misrepresentation, and puffing is best avoided. An example of puffing would be, "This home has the best view in the city". Also known as puffery. |
| purchase offer | A document that lists the price, terms and conditions under which a buyer is willing to purchase a property. |
| qualify | To meet a mortgage lender's approval requirements. |
| qualifying ratios | Comparisons of a borrower's debts and gross monthly income. |
| quiet enjoyment | The right of a property owner or tenant to enjoy his or her property without interference. Disruption of quiet enjoyment may constitute a nuisance. Leases and rental agreements often contain a "covenant of quiet enjoyment," expressly obligating the landlord to see that tenants have the opportunity to live undisturbed. |
| quitclaim deed | A deed that transfers whatever ownership interest the transferor has in a particular property. The deed does not guarantee anything about what is being transferred, including an actual ownership interest. For example, a divorcing husband may quitclaim his interest in certain real estate to his ex-wife, officially giving up any legal interest in the property. A quit claim deed may also be used to clear up a cloud on the title to the property in cases where there is a question of a possible ownership claim. Compare with grant deed. |
