PRIMARY LEASE
The original lease, as distinguished from a sub lease.
PRIME LENDING RATE
The most favorable interest rates charged by a commercial bank on short term loans, (not mortgages).
PRIME MORTGAGE MARKET
The market in which the loan is originated. The loan may then be sold in the Secondary Mortgage Market.
PRIME TENANT
The major tenant in a building, shopping center, etc. It may be necessary to have a prime tenant in order to obtain construction financing. The tenant may be considered “prime” because of its financial strength, rather than by the amount of space it occupies.
PRIMER
A coat of sealant or other preparatory substance, applied to a surface before a finish coat.
PRINCIPAL
(1) The person who gives authority to an agent or attorney (see attorney-in-fact). (2) Amount of debt, not including interest. The face value of a note, mortgage, etc.
PRINCIPAL BALANCE
The amount owed on a loan at any given date, not including interest.
PRINCIPAL MERIDIAN (PRIME MERIDIAN)
The meridian being used as a reference point in a specific property description. See also: Base Line; Meridian.
PRINCIPAL RESIDENCE
The prime or main living quarters. It may be based on time spent at the location or declared by the resident to be his/her principal residence. It is important, for example, for tax purposes and declarations of homestead.
PRINCIPAL, INTEREST, TAXES, AND INSURANCE
See: PITI.
PRIORITY
That which comes first in time or importance. Regarding liens, the time of recording usually establishes priority.
PRIORITY CLAUSE
A clause in a junior lien, acknowledging the priority of a prior lien.
PRIVATE CONDUIT
See: Conduit.
PRIVATE LAND GRANT
A grant of public land to an individual.
PRIVATE MORTGAGE INSURANCE
Insurance against a loss by a lender in the event of default by a borrower (mortgagor). The insurance is similar to insurance by a governmental agency such as FHA, except that it is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment.
PRIVATE PROPERTY
Property owned by a person, group, corporation, or other entity, not a governmental body.
PRIVITY
Mutual or successive relationship to the same rights of property, such as heir and ancestor, assignee and assignor.
PRO RATE
To divide in proportionate shares, such as taxes, insurance, rent, or other items which buyer and seller share as of the time of closing, or other agreed upon time.
PROBATE
Originally, the proving that a will was valid. Modernly, any action over which probate court has jurisdiction.
PROBATE COURT
A court having jurisdiction of estates, whether of a deceased, a minor, or a incompetent person.
PROBATE SALE
Sale of property from an estate. must be done under supervision and procedures of the probate court.
