Jargon Buster
Owner Statement
An owner statement is the statement of account sent to a landlord each month by their letting agent.
P.C.M
PCM stands for Per Calendar Month and is used when outlining a tenant’s monthly rent payment.
Parties
Parties refers to the individuals in a property rental agreement – usually the landlord and tenant, but also a tenant’s guarantor if they have one.
In a tenancy agreement, the individuals are collectively referred to as ‘The Parties’.
PAT test
PAT stands for Portable Appliance Testing and is an assessment of electrical appliances and their safety.
Payment advice
Payment advice is issued to landlords by their letting agent when their account is credited.
Peppercorn rent
A peppercorn rent is a nominal rent where a landlord doesn’t receive a cash payment.
To legally grant a lease, the owner of land or a property must charge a rent. However, if they only wish to create the lease and not charge a cash rent, they can request rent of ‘one peppercorn’ per year instead of money.
Periodic statement
Periodic statements are reports landlords require to calculate their annual tax returns and outline all rent and expenses paid in a tax year (April 6 – April 5).
Permitted occupier
A permitted occupier is any person who is licensed by a landlord to live at a property and bound by all terms apart from the payment of rent.
Power of Attorney
Power of Attorney is a legal document that gives a third-party right over a property and/or assets.
Probate sale
A probate sale refers to a property being sold because the owner has passed away.
Public Liability Insurance
Public Liability Insurance covers the cost of claims made by members of the public injured because of someone’s business activities.
Purchaser
Purchaser is another name for a buyer in a property sale.
More detailed definitions of purchasers could see them referred to as a cash purchaser, purchasing requiring a mortgage, purchaser dependent on sale, or a first-time purchaser.
Purchasers who are prepared to exchange contracts unconditionally with a seller are known as ‘ready, willing, and able’ purchasers.