Home Page - Kelowna Real Estate

PACKAGE MORTGAGE:
A loan secured against both land and chattels.

PAD SITE:
An independent location for a retailer that may be near to but not part of a mall or shopping centre.

PAPER PROFIT:
A description of the increase in the value of an asset that has not been realized (i.e. the asset has not been sold so that owner does not enjoy the profit).

PAPER:
Slang term for a loan note given instead of a cash payment.

PARCEL:
1. Another word for a piece of land.
2. In Torrens System properties, "parcel" replaces "lot" in the legal description (i.e. Parcel 5, Block 25).

PARCEL REGISTER:
The abstract index for a property registered in the Torrens System of land registration.

PAROL:
Not written, verbal.

PAROL CONTRACT:
An agreement that is not reduced to writing, that is created through spoken words.

PAROL EVIDENCE RULE:
A legal rule of evidence. A court will not allow evidence of oral discussions which purport to modify a written contract.

PARTIAL DISCHARGE:
A document signed by the mortgagees holding a blanket mortgage registered on title to several properties which removes the mortgage from title to just one of the properties.

PARTIAL INTEREST:
Ownership of property that is less than 100% or on a lower level than fee simple.

PARTIAL PAYMENT:
Any payment which is insufficient to meet the full amount required.

PARTIAL RELEASE:
A document signed by the mortgagees holding a blanket mortgage registered on title to several properties which removes the mortgage from title to just one of the properties.

PARTIALLY AMORTIZED MORTGAGE:
A very common form of mortgage in which the term is less than the amortization period such that, at the maturity date, the mortgage is not fully paid out and either refinancing or a large balloon payment is required.

PARTICIPATION (OR PARTICIPATING) MORTGAGE:
A mortgage in which the lender is entitled to a stated share of the income of the property or of sale proceeds.

PARTITION:
A court ordered division of property owned by two or more owners, may take the form of a physical division of the property or a forced sale and division of the proceeds.

PARTNERSHIP:
A form of business enterprise where two or more persons join together without forming a corporation. The partners are capable of binding each other to contracts, are liable for each other's actions.

PARTY WALL:
A shared wall between two pieces of property, most often in row-houses, semi-detached houses, or townhouses. The shared wall generally stands on the property line.

PASSIVE SOLAR HEATING:
The maximization of the sun's heating abilities through careful design of a building.

PATENT:
The initial transfer of title to land from government to private ownership.

PAY OUT:
To provide the lender with the total amount then required to retire a loan obligation.

PAYMENT ADJUSTMENT INTERVAL:
The period of time between changes in the amount of each periodic payment on a variable or adjustable rate mortgage.

PAYMENT CAP:
A term of some variable or adjustable rate mortgages in which the level to which the monthly payment may rise is limited to a certain dollar figure.

PAYMENT CHANGE DATE:
The date when the amount of each payment under an adjustable, variable or graduated payment mortgage changes.

PAYMENT DECREASE CAP:
A contractual limit on the amount of each periodic payment may drop at any one payment change date. Expressed as a percentage.

PAYMENT INCREASE CAP:
A contractual limit on the amount of each periodic payment may rise at any one payment change date. Expressed as a percentage.

PAYMENT PENALTY:
Also known as "prepayment penalty" or "early payment penalty", the fee paid by a borrower when she pays out some or all of the principal of a loan at a time when such a payment is not allowed under the terms of the loan.

PRIME TENANT:
The biggest tenant in a commercial complex. Also known as "key tenant" or "anchor tenant".

PENALTY:
Fine for breaching a rule, term of a contract or law.

PENTHOUSE:
The dwelling(s) located at the top of a tall building, often luxurious.

PER STIRPES:
Latin term, meaning by representation. A method of dividing an estate equally among the heirs of the deceased. If an heir has predeceased, her share is divided equally by her linear descendants.

PERC TEST (PERCOLATION):
A method of determining the ability of the soil of a property to absorb liquids, used in construction projects and for septic systems.

PERCENTAGE LEASE:
A rental agreement in which the tenant's monthly payment is a percentage of the gross sales