Par

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

Pari Passu

On an 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

A release from the mortgage of a definite portion of the mortgaged lands usually given after the mortgagor has prepaid a specific portion of the mortgage debt.

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 service 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. It may have an indefinite term and may endure beyond the maturity of the loan. It need not involve any equity investment by the lender beyond the amount of the mortgage loan.

Perfecting Title

The elimination of any claims against title.

Performance Bond

A bond issued by a duly incorporated surety company covering the faithful performance of the contract and the payment of all obligations arising under the contract.

Permanent Loan

An amortizing loan on completed property which is 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

The borrower's assets are pledged or subject to claim in addition to a primary security.

Plot Plan

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.

Plottage

The increase in value of a plot of land created by the assembling of small parcels into one ownership.

Police Power

The right of government to limit property rights without compensation provided the limitation is not specific to one parcel.

Postponement

The deferment of a prior charge on title to another.

Power of Attorney

A written instrument duly signed and executed by an owner of property that authorizes someone to act on behalf of the owner, to the extent indicated in the instrument.

Power of Sale

A clause generally inserted in mortgages giving the mortgagee the right and power, on default by the mortgagor of moneys due, to sell the mortgaged property by public auction, private contract or tender.

Pre-Authorized Cheques

Direct withdrawals of due payments from a borrower's bank account in accordance with authority granted by the borrower.

Premium

1. The amount, often stated as a percentage, paid in addition to the face value of a mortgage when the mortgage is being purchased. 2. The charge for insurance coverage.

Prepayment Clause

A clause inserted in a mortgage that gives the mortgagor the privilege of paying all or part of the mortgage debt in advance of the maturity date.

Prepayment Penalty

The sum of money (usually equal to an amount of interest) a mortgagee may require from a mortgagor to repay all or part of any outstanding principal.

Prime Rate

The rate at which financial institutions lend to their best customers.

Prior Charge

An encumbrance ranking in priority to the mortgage in question.

Probate

Letters probate are issued by the Surrogate Court or the Court of Probate certifying that the Will has been approve and that the executor has been duly appointed.

Progress Advance Loan

A loan made, usually to a builder, where moneys are advanced from time to time as construction progresses.

Promissee

The person who can enforce the promise in a contract is called the promissee.

Promissor

The person who makes the promise in a contract is called the promissor.