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Parcel: A specific piece of land or property with specific, defined boundaries that is separate from neighboring properties. Also known as a land lot.
Parking Strip: Also known as a parking lane or curb lane, a parking strip refers to the designated area along the side of a road or street where vehicles can park. A parking strip is typically marked by painted lines or signage indicating the boundaries and any applicable parking regulations.
Partial Release: A provision in a mortgage agreement that allows the borrower to release specific portions of the collateral property from the mortgage lien as agreed upon.
Passive Income: Income generated from rental properties or real estate investments that require minimal active involvement from the owner.
Patent Defect: A noticeable or obvious flaw or issue in a property or asset that is readily apparent upon inspection. A patent defect is one that can be discovered through reasonable observation and does not require specialized knowledge or expertise.
Payment Cap: A limit on how much the monthly payment can increase or decrease on an adjustable-rate mortgage (ARM) during a specific period. The payment cap provides protection to borrowers by capping the amount their mortgage payment can change, even if the interest rate fluctuates.
Pending: Refers to a property that has an accepted offer or is under contract but has not yet closed. This may be because the sale is subject to certain contingencies, such as the buyer obtaining financing or the property passing inspection. Once an offer is accepted and the property goes into pending status, the sale is considered to be under contract. However, the sale is not final until all of the contingencies have been satisfied and the property has been transferred to the buyer. Until this point, the seller is typically still allowed to accept other offers, although they may be required to notify the buyer who made the pending offer.
Per-Diem Interest: The daily interest charged on a loan. It is calculated based on the loan's interest rate and the number of days the loan is outstanding.
Perimeter: The boundary or outer edge of a property or structure.
Personal Real Estate Corporation (PREC): A type of corporation that is owned and controlled by a licensed real estate agent or broker in Canada. A PREC allows the owner to incorporate their real estate business and take advantage of certain tax and liability benefits. In general, a PREC is treated like any other corporation for tax purposes. This means that the PREC is responsible for paying corporate income tax on its profits, rather than the individual owner. The PREC may also be eligible for certain tax deductions and credits that are not available to individual real estate agents or brokers.
Planning Permission: Official authorization from the local government or municipality for the construction, modification, or use of a property.
Pocket Listing: A pocket listing, also known as an off-market listing, is a type of real estate listing that is not publicly advertised or marketed. Instead, a pocket listing is typically shared only with a select group of potential buyers or other agents, and is not listed on the Multiple Listing Service (MLS) or other public platforms. Pocket listings can be used for a variety of reasons. For example, a seller may choose to list their property as a pocket listing if they want to keep their sale private, or if they are not in a hurry to sell and want to test the market before making their property publicly available. A buyer's agent may also share pocket listings with their clients if they have access to properties that are not yet on the market.
Possession: The physical control and occupancy of a property by a person or entity. It signifies the act of holding or residing in the property, typically as an owner or tenant. Possession can be obtained through various means, such as purchasing the property, leasing it, or inheriting it.
Potential Rental Income: The estimated amount of income that a property could generate from rental or lease agreements.
Power of Attorney: A legal document that grants authority to an individual (known as the "agent" or "attorney-in-fact") to act on behalf of another person (known as the "principal") in legal, financial, or personal matters. The power of attorney allows the agent to make decisions, sign documents, and perform actions on behalf of the principal as if they were the principal themselves.
Pre-Approval: The process of getting approved for a mortgage loan before finding a property, based on the borrower's financial situation and creditworthiness.
Pre-Sold Home: A property that is sold by a developer or builder before it is completed or ready for occupancy.
Prepayment Penalty: A fee charged by a lender if a borrower pays off a loan early, designed to compensate the lender for potential interest income lost.
Prequalification: An initial assessment by a lender to estimate how much a borrower may be eligible to borrow for a mortgage, based on their self-reported financial information.
Principal: The original amount of money borrowed in a loan, excluding interest and other charges.
Private Mortgage Insurance (PMI): Insurance coverage that protects the lender in case the borrower defaults on a mortgage loan with a down payment of less than 20% of the property's value.
Property Management: The administration, operation, and oversight of real estate properties on behalf of the owner, including rent collection, maintenance, and tenant relations.
Property Tax: A tax levied by the local government or municipality on the value of a property, typically based on an assessment of its worth.
Purchase Agreement: A legally binding contract between a buyer and seller that outlines the terms and conditions of a property purchase.
Purchase Price: The agreed-upon price that a buyer will pay to acquire a property.
Purgé: A French term used in Quebec to refer to a process of clearing or eradicating a property's title from certain defects or encumbrances.
Pylon Sign: A freestanding outdoor sign, often tall and supported by one or more poles, used to display information about a property or business.