Prepayment Penalty

The percentage a lender may require to be paid in addition to the unpaid principal balance when a loan is paid off ahead of schedule.

Prescription

Obtaining title to property by adverse possession by occupying it for the period determined by law to bar action for recovery.

Prima Facie

Presumptive on its face; true, valid, or sufficient at first impression.

Principal

The employer of an agent.

Promissory Note

The document signed by the borrower promising repayment of the loan showing the amount of monthly payments, interest rate, first payment date, last payment date, and the late charge and prepayment provisions.

Proration of Taxes

To divide or prorate the taxes equally or proportionately to time of use.

Puffing

The sometimes exaggerated buildup a salesperson or the seller may give to property. It is recognized in law as an opinion and not necessarily representing the facts

Purchase Money Encumbrance

(1) A trust deed or mortgage given by the buyer to the seller as part or all of the purchase price of the property. (2) A trust deed or mortgage given to a third party as security for the borrowing of money used to purchase less than five residential units, one of which is to be occupied by the purchaser.