In real estate finance, P.I.T.I. stands for principal, interest, taxes, and insurance, which are the four main components of a typical monthly mortgage payment. Principal and interest relate directly to repayment of the loan, while taxes and insurance cover property...

In real estate finance, a piggyback loan is a financing arrangement in which two or more lenders make loans on the same property under a single mortgage or deed of trust. The combined loans are secured by the same real estate. Piggyback loans are often used to...

In real estate finance, P.I. stands for principal and interest, referring to the two primary components of a loan payment. The principal portion reduces the outstanding loan balance, while the interest portion represents the cost of borrowing the funds. The term P.I....

In real estate appraisal, physical life refers to the length of time an improvement is expected to remain structurally sound and usable when properly maintained. It represents the period during which the building can physically function as intended. Physical life is...

In real estate appraisal, physical deterioration refers to the loss in value of a property caused by impairment of its physical condition. This decline results from factors such as wear and tear, aging, use, and exposure to the elements. Physical deterioration may be...

In real estate law, personal property refers to any property that is not classified as real property. It generally includes movable items that are not permanently attached to land or buildings. Personal property can include furniture, equipment, appliances, vehicles,...

In real estate finance, a permanent mortgage is a long term loan placed on a property after construction has been completed. It is typically used to replace short term construction financing and generally has a term of ten years or more. Permanent mortgages are often...

In real estate and construction, a performance bond is a bond provided by a builder or contractor to guarantee the completion of a construction project. It serves as financial assurance that the work will be performed in accordance with the contract terms. If the...

In real estate transactions, a perfect escrow refers to an escrow that is complete and fully prepared to close. It exists when the escrow agent has received all required instruments, documents, and instructions necessary to carry out the transaction. With a perfect...

In real estate, a percentage lease is a leasing arrangement most commonly used for retail properties in which rent is based in part on a percentage of the tenant’s gross or net sales. This structure aligns the interests of the landlord and tenant by linking rental...