In real estate finance, prepaid interest is interest that is paid in advance of the period for which it is due. It commonly occurs at loan closing to cover interest from the funding date to the start of the first regular payment period. Prepaid interest ensures that...

In real estate transactions, a preliminary title report is a document that outlines the current condition of title to a property prior to a sale or loan closing. It identifies the vested owner and discloses recorded liens, encumbrances, easements, and other matters...

In real estate and construction, a prefabricated house is a dwelling that is manufactured in whole or in part at a factory before being transported to the building site. Some components may be partially assembled prior to delivery, with final construction completed on...

In real estate finance, a power of sale is a provision in a mortgage or deed of trust that authorizes the mortgagee or trustee to sell the property if the borrower defaults on the loan. This clause provides a contractual remedy for the lender without requiring court...

In real estate and agency law, a power of attorney is a written legal instrument by which a principal grants authority to another person to act on the principal’s behalf. The authority granted may be broad or limited, depending on the terms of the document. The agent...

In real estate and constitutional law, police power is the authority of the state to enact and enforce laws to protect the public’s health, safety, morals, and general welfare. This power forms the legal basis for many regulations affecting the use and ownership of...

In real estate finance, points are fees charged in connection with a loan and are calculated as a percentage of the loan amount. One point is equal to one percent of the total loan. Points are often paid at closing and may be used to increase a lender’s yield or to...

In real estate finance, P.M.I. refers to private mortgage insurance, which is insurance provided by a private company to protect a lender against loss in the event of borrower default. It is commonly required when a borrower makes a smaller down payment and the loan...

In real estate appraisal, plottage increment refers to the increase in value that results from combining two or more smaller, adjacent parcels of land into a single larger parcel under one ownership. The assembled property often has greater utility and development...

In real estate and finance law, a pledge is the delivery of personal property by a debtor to a creditor as security for a debt. The pledged property serves as collateral to ensure repayment of the obligation. If the debtor defaults, the creditor has the right to...