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Par is an expression used when a mortgage is sold or purchased for the outstanding balance without premium or discount.

Pari Passu means "on equal basis". When mortgages are syndicated, the lenders participate equally. No one party has preferential access to gains or is able to opt out of losses. In company stock, it refers to equal ranking of a company's preferred shares.

Partial Discharge is a release from the mortgage of a definite portion of the mortgaged lands. A partial discharge may be given after the borrower has repaid a specific portion of the mortgage debt.

Partially Amortized Mortgage is a mortgage that protects both borrowers and lenders from the risk of unexpected interest fluctuations. The loan matures on a short term basis, at which time the full amount of the outstanding amount must be either repaid or refinanced at current interest rates.

Participation:
  • Income Participation: The lender's right to share in the annual income produced by the property over the term of the mortgage, in addition to receiving debt repayments on the mortgage.
  • Equity Participation: Partial ownership of income or investment property given by the owner to the lender as part of the consideration for making the loan. There may be an indefinite term and may endure beyond the maturity of the loan. In need not involve any equity investment by the lender beyond the amount of the mortgage loan.

Partnership is a business co-owned by two or more people. This form of ownership is less common than a sole proprietorship or a corporation. Like sole proprietorship, a partnership does not exist as a separate legal entity. Each partner is taxed on his or her share of any profits.

Patent Defects is an obvious flaw.

Percentage Adjustments are estimates of differences between each factor being compared to the subject property, expressed as a percentage of the sales price in an appraisal. For example, a buyer might pay 10% more (calculated as a percentage of selling price) for a home with a finished basement compared to one with an unfinished basement. See dollar adjustment.

Perfecting Title is the elimination of any claims against title.

Performance are actions required by a contract or agreement to fulfill one's obligations. The contract is considered completed following the last act of performance.

Performance Bond ia s bond issued by a duly incorporated surety company. It covers faithful performance of the contract and payment of all obligations arising under the contract.

Permament Loan is an amortizing loand on completed property, intended to remain on that property over the full amortization period. The terms and conditions of the loan usually change during that period.

Personal Liability occurs when borrower's personal assets are pledged, or subject to claim, in addition to a primary security.

Personal Property is also referred to as 'chattels'. Personal property is more temporary and more destructible than real property.

PITH are the four costs inlcuded in the calculation of the gross debt service ratio, namely principal, interest, taxes and heat.

Plot Plan is a drawing showing a layout of improvements on a site, including their location, dimensions and landscapes. It is generally a part of the architectural plans.

Portable Mortgage is a mortgage with an option that allows a buyer to transfer current mortgage to new property (typically subject to credit approval and property appraisal).

Possession (Unities) means that each interest is an undivided interest in the whole of the property.

Postal Acceptance Rule provides guidelines on how to accept offers. Basically it indicates that an acceptance should be delivered in the same manner as the offer is made and defines when that acceptance goes into effect. For example, if an offer is made by non-instantaneous means such as mail, then the acceptance is effective when it is put into the mailbox, rather when it is received.

Postponement is the deferment of a prior charge on title to another.

Power of Attorney is a written instrument, duly signed and executed by an individual, that authorizes someone to act on his or her behalf, to the extend indicated in the instrument.

Power of Sale is a clause generally inserted in mortgages giving the lender the right and power, on default by the borrower, to sell the mortgaged property by public auction, private contract or tender.

Pre-Authorized Cheques are direct withdrawals of payments due from a borrower's bank account in accordance with authority granted by the borrower.

Premium is the amount, often stated as percentage, pain in addition to the face value of a mortgage when a mortgage is being purchased.

Prepayment Clause is a clause inserted in a mortgage that gives the borrower the privilege of paying all or part of the mortgage debt in advance of the maturity date.

Prepayment Penalty is the sum of money (usually equal to an amount of interest) a lander may require from a borrower to repay all or part of any outstanding principal in advance.

Prime Rate is the interest rate at which financial institutions lend to their best customers.

Principal is the amount upon which interest is paid.

Principal Risk is a risk to the lender associated with interest only loans. This risk is a result of market fluctuations. If the market value of the property falls, it might be worth less than the principal amount of the loan due at the end of the mortgage term. The lender might not be able to recover the entire principal. 

Prior Charge is an encumberance ranking in priority over other, subsequent charges.

Private Mortgages are mortgagesprovided by private corporations and individuals.

Profit Margin is a calculation of how effectively a firm is using its resources, calculated by dividing net income after taxes by revenues.

Promisee is person who can enforce the promise in a contract.

Promisor is person who makes the promise in contract.

Public Costs (Fraud) are costs that affect the consumer and industry, such as new authentication methods and protection procedures.

Pur Autre Vie is a life estate or interest measured by the life of a third person rather than that of the person enjoying the property.

 

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Walter Pawlowski Ontario Mortgage Agent M11002486