In real estate finance, a penalty is an extra payment or charge imposed on a borrower for deviating from the terms of the original loan agreement. It is most commonly assessed for being late in making a regularly scheduled payment. Penalties are intended to compensate...

In real estate transactions, a payoff escrow is an escrow arrangement established specifically to pay off an existing loan secured by property. It is commonly created as part of a larger escrow and is often referred to as a sub escrow. The payoff escrow ensures that...

In real estate finance, a payoff refers to the full payment of an outstanding loan balance or other lien secured by property. It satisfies the borrower’s obligation and brings the debt to an end. Upon payoff, the lender is required to release the lien against the...

In real estate finance, a payment cap is a limit placed on the amount that a borrower’s periodic payment can increase under an adjustable mortgage loan. This cap applies regardless of how much the interest rate rises during an adjustment period. When a payment cap...

In real estate, a patent defect is a flaw or deficiency in property that is plainly visible or that would be discovered through the exercise of ordinary care. It is a condition that can be identified by reasonable inspection without the need for specialized testing or...

In real estate and property law, a party wall is a wall constructed on the boundary line between two adjoining properties that are under separate ownership. The wall is intended for the use and benefit of both properties. Party walls commonly support structures on...

In real estate and business law, a partnership is a voluntary association of two or more persons who agree to carry on a business or venture together. The parties share in the management of the enterprise and participate in its profits and losses according to their...

In real estate law, partition refers to the division of real property owned jointly by two or more parties into separate portions. The result is individual ownership interests, allowing each former co owner to hold title to a distinct share of the property. Partition...

In real estate finance, a participation mortgage is a financing arrangement in which the lender receives not only interest on the loan but also a share of the project’s gross sales or profits. This structure allows the lender to participate directly in the financial...

In real estate finance, a partial release is the release of a portion of property that is subject to a mortgage or deed of trust. It allows a specified part of the secured property to be removed from the lender’s lien while the remaining property continues to secure...