PARCEL:
Any area of land contained within a single description.
PAROL:
Orally, by word of mouth. For example, if a landowner
gives another verbal permission to gather firewood
from his land, or permission to hunt game thereon,
that verbal permission would be called a parol
license. Also, a witness who testifies by word
of mouth in court is said to give parol testimony
as contrasted to written evidence which may be
introduced in the case, such as original deeds,
wills, correspondence, or other documents.
PAROL
GIFT:
A gift made orally, by word of mouth as contrasted
to one made in writing.
PARTITION:
In the title industry, a lawsuit between joint
owners of real estate in which the court either
divides the property between them or orders the
property sold and divides the proceeds between
them.
PARTNERSHIP:
A voluntary association of two or more persons
to carry on as co-owners of a business for profit.
May be either a general partnership or a limited
partnership.
PARTY
WALL:
A wall built along the boundary line of adjoining
properties and shared by the respective property
owners or tenants.
PATENT:
1) (noun) A conveyance, by the federal government,
of title to a portion of the public land. (2)
(adjective) Apparent, obvious, open to view. (See,
also "Latent.")
PERCENTAGE
LEASE:
A lease of property in which the rental is based
upon the volume of sales made by the lessee on
the leased property.
PERIMETER:
(1) The boundary lines enclosing a tract of land.
(2) The length of the boundary lines enclosing
a tract of land.
PERPETUITY:
The taking of property out of the channel of commerce
by limiting its capacity to be sold for a period
of time longer than that of a life in being plus
21 years and a period of gestation. It is the
condition of an estate limited so that it will
not take effect or vest within a period fixed
by law. Also called the "Rule Against Remoteness
of Vesting."
PERSONAL
PROPERTY: Temporary or movable property as distinguished
from real estate.
PERSONALTY:
Personal property.
PLAINTIFF:
The party initiating an action.
PLANNED
UNIT DEVELOPMENT:
A planned unit development ("PUD") is
a project in which, typically, the buildings are
built in styles that are sometimes referred to
as "cluster housing." PUD is a concept
according to which housing, typically a group
of townhomes, patiohouses, or row-houses, is built
with minimal ground space or yards surrounding
each dwelling. The ground which would normally
constitute the yard for each dwelling is consolidated
into a larger recreational or greenbelt area.
This area usually also includes all walks, drives,
and parking areas. The individual dwellings and,
possibly, a small patio, flower bed, or similar
minimal ancillary personal use site, which may
be owned with the residence, are individually
owned. All of the ancillary land, such as recreation
areas, greenbelts, walkways and others ("common
area") are owned as an undivided interest,
usually indirectly, with others. Because of the
typical land ownership divisions, the unit owners
are granted easements appurtenant (running with
the land) foringress, egress, parking, and recreational
use over the common area; otherwise the units
would be landlocked.
PLAT:
A map of a town, section, or subdivision showing
the location and boundaries of individual parcels
of land subdivided into lots, with streets, alleys,
easements, etc., Usually drawn to a scale. Black's
Law Dictionary, 5th Edition.
PLAT
BOOK:
One in a set of books in the public records in
which maps, plats, and copies of surveys are recorded.
POLICE
POWER:
The inherent authority of a government to impose
restrictions upon private property or private
rights for the sake of public welfare, order,
and security.
POLICY:
(See "Owner's Policy", "Mortgagee
Policy", and "Loan Policy.")
POWER
OF ATTORNEY:
A legal instrument authorizing one to act as another's
agent or attorney.
PRECEDENT:
A previously decided case that can serve as authority
to help decide a present controversy.
PRELIM:
See "Preliminary Report".
PRELIMINARY
CERTIFICATE:
(See "Binder.")
PRELIMINARY
REPORT:
A written report issued by a title company prior
to issuing title insurance, showing the matters
discovered in their title search which would appear
as exceptions in a title policy if the policy
were issued as of the date of the report.
PREMIUM:
(1) The amount payable for an insurance policy.
(2) A sum of money or bonus paid in addition to
the regular price.
PREPAYMENT
CLAUSE:
A provision in a loan agreement permitting the
debtor, for consideration, to pay part or all
of the balance of the debt before its due date,
thus saving interest.
PREPAYMENT
PENALTY:
Charge imposed by a lender on a borrower who wants
to pay all or part of the loan balance before
its due date.
PRESCRIPTION:
In the broad sense of modern times, the gaining
of some right or interest in real estate through
long and continuous adverse use, usually for a
period prescribed by statute, such as the acquisition
of an easement by the unlicensed and adverse use
of a path, roadway, or utility lines across another
property.
PRESCRIPTIVE
EASEMENT:
A right to use another's property which is not
inconsistent with the owner's rights and which
is acquired by a use, open and notorious, adverse
and continuous for the statutory period (e.g.
Twenty years). To a certain extent, it resembles
title by adverse possession but differs to the
extent that the adverse user acquires only an
easement and not title. To create an easement
by "prescription," the use must have
been open, continuous, exclusive, and under claim
of right for statutory period. (See, also "Adverse
Possession.") Black's Law Dictionary, 5th
Edition.
PRESUMPTION:
That which may be assumed without proof.
PRETERMIT:
To omit; to pass by. For example, a child who
is not mentioned in his parent's will is referred
to as a pretermitted heir.
PRIMA
FACIE:
Assumed correct until overcome by further proof.
PRIMARY
RETENTION or PRIMARY LIABILITY:
These terms refer to a level of reinsurance liability.
It is the amount of liability retained by the
ceding company for which it has the sole liability
in the event of a loss. When reinsurance is involved,
fees paid under a title policy obligation to defend
are not deducted from the primary retention; that
is, primary retention includes these fees. If
the primary is, for instance, $5,000,000, then
the total liability for the retention includes
defense costs as well as damages up to that amount.
When reinsurance is obtained by a ceding company,
the primary retention will vary depending upon
the size of the company. Unless restricted, the
primary retention is usually set at $5,000,000,
and any remaining amounts above the primary retention
that the ceder wants to take become secondary
reinsurance or are placed on another level, such
as tertiary.
PRINCIPAL:
(1) A sum of money owed as debt upon which interest
is payable. (2) A person who empowers another
to act as his representative or agent. (3) The
person having prime responsibility for an obligation
as distinguished from one who acts as a surety
or endorser.
PRIORITY:
The relative superiority of competing liens or
encumbrances.
PROBATE:
A legal procedure in which the validity and probity
of a document, such as a will, is proven.
PROMISSORY
NOTE:
A written promise to pay or repay a specified
sum of money at a stated time, or on demand, to
a named person. In addition to the payment of
principal, a promissory note usually provides
for the payment of interest.
PROPERTY:
(1) Something tangible or intangible capable of
being owned and controlled. (2) Lands or chattels
in which a person owns some right, title or interest
to the exclusion of all others.
PUBLIC
DOMAIN:
Land of which title still vests in the United
States of America.
PUBLIC
RECORDS:
The transcriptions in a recorder's office of instruments
which have been recorded, including the indexes
pertaining to them.
PURCHASE
MONEY MORTGAGE:
A mortgage given by a purchaser to a seller on
the subject property to secure payment of all
or a part of the purchase price.
