parking ratio
The relationship between the number of car parking spaces and the amount of accommodation available for other uses within a building or group of buildings.
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parkway
A broad landscaped highway, often divided by a planted median strip.
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part occupation certificate (OC)
A document issued by the building proposal department of the local municipal authority that provides a no objection to occupy the specific floor in the building under reference for its specified use. The Part OC is issued only once the premises/building has been completed in all respects and can be occupied. A corporate can occupy and carry on its operations only once the demised premises has received its OC.
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partition
An internal wall normally constructed from light weight dry materials such as metal or timber framework with plasterboard sheet lining.
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party wall
A wall that separates two or more properties on the same parcel of land under different ownership.
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passing rent
The amount of rent as at current date or the date of valuation.
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patent defect
Visible defect in a product, property or document. In legal matters, the term refers to a defect, which cannot be corrected on the document itself, and a fresh document rectifying the flaw has to be obtained.
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patio
An area adjoining the house that is paved with concrete, flagstone, brick, etc. and is used for relaxation or recreation purposes.
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pedestrian overpass
Bridge constructed over a highway, railway, roads, etc. for the use of pedestrians.
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penal rent
A financial punishment of a tenant for failing to honor his obligation to pay rent at the proper time, taking the form of a vastly higher figure being payable during the period of default.
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penthouse
A luxury dwelling unit located on the top floor or roof of a high-rise building.
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per annum
By the year. On a yearly basis. For each year.
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per capita
A Latin term that translates into “by head,” per unit of population; per person. In legal terms it means equally to each individual. Per capita distribution of an estate provides each descendant with an equal share of the estate’s assets regardless of the degree of his or her kinship. Children, grandchildren, greatgrandchildren, etc., all receive equal shares.
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per diem
Per day or daily.
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percentage lease (turnover rent)
A lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually stipulates a minimum rental and is regularly used for retailers who are tenants. Usually does not fall below a base rent. |
performance bond
A bond, given by a contractor and issued by an insurance company to guarantee the completion of contracted work. |
perimeter
The boundary lines of a property expressed in terms of measurement in length.
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permitted use
A use allowed by the deemed grant of planning permission under the local development control norms.
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perpetuity
The condition of being never ending. In legal terms it refers to an interest under which property is less than completely alienable for longer than the law allows.
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personal property
Property of an entity that is not termed by law as real property.
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physical depreciation
Decline in value of property due to physical damage to the property such as wear and tear or lack of maintenance.
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pile
Perpendicular support piece of a structure, driven into the ground, which supports the foundation.
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pillar
A long, slender, perpendicular structure used as a support.
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pitch
Slope of a roof. Pitch is the ratio of vertical rise to horizontal run.
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planned (unit) development
Residential project that features dense clusters of houses surrounded by areas of open space, owned in common and maintained by a nonprofit association.
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planning commission
Governmental body having the responsibility for planning the future development of a jurisdictional area. A planning commission is responsible for developing and managing a zoning ordinance as well as interfacing with a professional planning department.
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plans
Drawings (made to scale) which are required for a construction project and includes the subcontractors drawings also.
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plat (plat map)
A map of a parcel of land showing the boundaries of individual properties that has been divided into lots.
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plat book
Public record of maps showing the division of streets, blocks and lots and providing the measurements of the individual parcels.
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pledge
The pawning of property as a security against a loan.
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pledged account loan
A savings bank account that is used as a collateral security against a loan.
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pledgee
Entity to whom a mortgage or property is pledged.
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pledgor
Entity who is responsible for making the payments on a mortgage on property that has been pledged.
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plot
1) An area of land that is used for a specific purpose such as a cemetery plot. 2) The term may refer to a piece of land on which a structure or improvements are to be built.
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plot plan
Plan represented in the form of a scale diagram that shows the proposed or existing use of a specific parcel of land such as the location of the structures within the boundaries of the property, utility services, compass directions, etc.
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plot ratio
Plot ratio determines the maximum gross floor area (GFA) allowable on a plot of land. A plot ratio of two means that the GFA allowable is two times the site’s area.
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plottage
The acquisition of several smaller contiguous lands to make a larger, more useful and valuable property or for putting the same to specific use.
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plottage increment
A term that refers to the increase in the value of land by plottage.
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plumbing
The system of pipes and other apparatus for conveying water, liquid wastes, etc., as in a building.
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PMI
An acronym for Private Mortgage Insurance.
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PMI pass-through certificates
Conventional mortgage securities that are supported by mortgages that are insured by private mortgage insurance companies.
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point
A term referring to one hundredth of a loan amount. Different from a basis point which is one hundredth of one per cent.
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point letter
Letter issued by a lender guaranteeing a specified number of points on a loan for a given period of time.
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policy
A term used to describe all insurance contracts.
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portfolio
A collection of property or other investments held in one ownership.
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possession
The position a lender takes in repossessing a property where the borrower is in default of its loan obligations
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possibility of reverter
Legal term to describe a situation where a person having relinquished his right (by sale, gift, etc.) over a property, retains the right to reassert his claims over it if the property is not used for the purpose for which it was sold, gifted, etc. Example: A person sells a property on condition that it will be used for an orphanage. If it is used for any other purpose the seller has the right to demand a reversal of the original transaction.
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post
To display (an announcement) in a place of public view or to cover (a wall, for example) with posters, notices, etc.
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postdated
Incorporating a later date on an instrument such as a check or a deed than the date on which it was signed.
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potable
Any liquid especially water that is fit for drinking.
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power center
A form of specialty store which merchandises the widest range of merchandise of a particular kind. For example, Home Depot is a power center for Do-It-Yourself (DIY) home improvement merchandise.
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power of attorney
A legal instrument authorizing one to act as another’s attorney or agent.
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power of sale
A power granted (as in a will, trust, or mortgage) to sell the property to which the power relates often under specified circumstances (as upon the default of a mortgage).
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PR
An acronym for public relations.
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practical completion
When a facility is completed to a stage where it is fit for occupation (minor defects may remain at this time).
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pre-commitment
Space directly pre-leased in buildings prior to their completion or refurbishment.
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pre-emption right
The right of first refusal or to make an offer before others.
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prefabricated house
A modular structure built of blocks manufactured elsewhere and assembled at the site.
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prefabrication
A technique whereby large units of a building or a part of it are produced in factories to be assembled, ready-made, on the building site.
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preliminary title report
A report filed by a lawyer who has conducted a preliminary search of a property’s title. Preliminary title reports are followed by final title reports that may confirm the findings of the earlier report or provide data on additional facts which come to light following a more detailed search.
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premises
1) The preliminary or explanatory statements or facts of a document, as in a deed. 2) Land and the buildings on it.
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premium
1) A sum of money or bonus paid in addition to a regular price, salary, or other amount. 2) The amount paid, often in addition to the interest, to obtain a loan. 3) The amount paid or payable, often in installments, for an insurance policy. 4) The amount at which something is valued above its par or nominal value, as money or securities. 5) The amount at which a securities option is bought or sold.
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premium rent
1) A rent above the level which a property could reasonably be expected to command in the open market on normal terms. Such rents may be justified in instances where the tenant receives a present or future benefit against the market, eg., in inflationary conditions where upward-only rent reviews are normally required at five-yearly intervals, the tenant may be prepared to pay a higher rent if fixed for a longer period of, say, 10 years. 2) A rent which is higher than would reasonably be expected because the tenant is particularly anxious to secure the property.
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prepaid interest
Interest paid before it is due.
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prepaid items
Advance payment of expenses such as taxes, insurance, rent, etc., on a property that may be prorated upon sale of the said property.
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prepayment
The payment of a debt or obligation, in part or full prior to its due date. Such payment may or may not result in penalties, depending on the terms of the contract.
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pre-sale
Similar to buying off plan, in which buyer purchases part of a future development. It is commonly used by developers to finance projects.
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present value
The future worth of a property or a sum of money discounted to its present-day equivalent, taking account of all relevant circumstances, including for example, inflation.
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price
1) The amount as of money or goods, asked for or given in exchange for something else. 2) The cost at which something is obtained.
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price-earnings ratio
The comparison of the market price of a share of stock to the earning per share of that stock, expressed as a ratio. Also called the P/E ratio.
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prime
Refers to property which is the best in terms of rentals, location, etc.
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prime tenant
The key tenant necessary to obtain construction financing. The tenant may be deemed “prime” because of its financial strength, rather than by the amount of space it occupies.
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prime yield
Descriptive of the current yield used in the valuation of property let at full market value and which — for the class of property concerned — is of the best physical quality, in the best location, and with the best tenant’s covenant and contemporary lease terms.
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principal
Borrowed amount of money minus any payments subsequently made (does not include the interest component). Alternately, the term refers to an entity giving authority to an attorney or an agent.
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principal contractor
The contractor responsible for the site and all activities that are carried out on it whilst under construction (has a major implication regarding safety).
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priority clause
A clause in a loan agreement that acknowledges that a prior loan enjoys first charge over a mortgaged asset
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private land grant
The transfer of land owned by the government to a private party. Such transfer may be in lieu of money or for charitable or other purposes.
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private property
Property owned by a private individual, company, corporation or a non-government body.
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private treaty
The most common method of disposal of real property, in which negotiations are carried out between the vendor and prospective purchasers (or their respective agents) privately and in comparative secrecy, normally without any limit on the time within which they must be completed before contracts are exchanged.
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professional negligence
A term often applied to the failure to meet the higher standard of care owed by “professional” advisers or other skilled persons to their clients or third parties by virtue of the special skill and experience which they hold themselves out to possess. Such is not strictly a special branch of the law of negligence but demonstrates that the standard of care — and thus the question whether there has been negligence — will depend upon circumstances of the particular case, including the knowledge, skill and experience of the person concerned.
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profit
Excess of income over expenses in a business transaction. Gain.
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profits method
Method of valuation through which the valuer looks at the operating costs of the business and assesses the amount of rent that the occupier can afford by way of rent. It is generally used where there is some degree of monopoly attached to the property.
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program (schedule)
A group of activities set out in sequence to provide a plan of how a project will be executed.
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project
A piece of planned work or an activity which is completed over a period of time and intended to achieve a particular aim, normally the construction of a facility.
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project management
The process of planning, organizing, staffing, directing and controlling a project.
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property
The right and interest in lands and chattels to the exclusion of others. Something owned; any tangible or intangible possession that is owned by someone.
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property asset management
A comprehensive form of management, similar to property portfolio management except that the managers have a wider degree of discretion. The primary objective is to maximize overall financial performance.
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property brief
An abridged or concise description of the property for sale, issued by the seller and approved by the seller and given to the buyer.
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property investment trust
A financial organization on the lines of a mutual fund that collects money from a large body of investors and deploys the same in properties. It derives its income stream from rental and from the sale of properties that appreciate above their purchase price.
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property line
Official dividing line between two properties. Legal boundary of property.
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property management
The range of functions concerned with looking after a building, including collection of rents, payment of outgoings, maintenance including repair, provision of services, insurance and supervision of staff employed for services, together with negotiations with tenants or prospective tenants. The extent of and responsibility for management between landlord and tenant depend on the terms of the lease(s). The landlord may delegate some or all of these functions to managing agents.
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property management agreement
An agreement between an owner of a property and the manager hired to manage the same. The agreement lays down in detail the scope of activities entailed in the service along with the terms and conditions of payment for the services rendered.
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Property Operation, Maintenance and Energy Costs (POMEC)
All expenses incurred by the owner of a property, usually a hotel, resort, commercial property or shopping mall, on maintaining and running the property. Includes expenses incurred on electricity, gas and fuels. The term originated in the hospitality industry, but is now used across almost all types of properties.
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property portfolio management
The unified management of a group of properties which are held in one ownership. Decisions taken in respect of any issue are reached on the basis of achieving the maximum benefit for the owners, having regard to the effect on the portfolio as a whole rather than on an individual property.
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property sector
Classification of property assets by type, including office, retail, residential, industrial and hotel.
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property tax
The tax on property ownership levied by the government or local authority. Also known as Real Estate Tax.
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property tenure (SGP)
The time period (usually in years) over which the owner of the property or land enjoys the legal right of use subject to other restrictive covenants that may or may not be in place. Most properties are either freehold, 999-year or 99-year in tenure.
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proprietor (MYS)
Any person or body for the time being registered as the proprietor of any alienated land.
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proprietorship
The state of being proprietor. The ownership of a business by an individual as against a partnership or corporation.
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prospect
A potential customer, client, or purchaser.
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public housing
Housing units built by government or statutory boards, which are sold or rented to individuals and families, usually from lower income groups at subsidised sale prices or low rental rates.
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public land
Acreage held by the government for conservation purposes. Public lands are generally undeveloped, with limited activities such as grazing, wildlife management, recreation, timbering, mineral development, water development and hunting.
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public tender (open tender)
A tender open to any member of the public who is able to fulfill the requirements specified in the tender document, the tender being advertised for this purpose.
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purchase agreement
A contract documenting the terms and conditions which govern the purchase of a property.
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purchase and leaseback
A purchase of a property and subsequent lease from the buyer back to the seller. Although the lease actually follows the sale, both are agreed to as part of the same transaction.
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