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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.

PASSED EMISSION INSPECTION

Vehicle passed the state emission inspection.

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." )

PAYMENT INTANGIBLE

A general intangible under which the principal obligation of the account debtor is to pay money, such as in the case of a loan not evidenced by an instrument or chattle paper.

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.

PERFECTION

An attached security interest that will prevail over a creditor using judicial process to obtain a lien on the collateral, including a trustee in bankruptcy having the status of a lien creditor at the commencement of the debtor's bankruptcy, is a perfected security interest under Article 9. There are three primary ways to perfect a security interest: filing, possession and control.

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."

PERSON

An individual or an organization.

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 Ed.

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." )

POLICE USE

Vehicle was used by a police agency.

PREVIOUS DAMAGE

Vehicle was previously reported as having been damaged.

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 Ed.

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.

PRIORITY (UCC)

The ranking of various interests in the same collateral among a secured party and other claimants. A secured party will prevail over unsecured creditors with respect to collateral in which the secured party has a perfected security interest. Even if the secured party fails tot perfect its security interest, the secured party will still prevail over unsecured creditors with respect to collateral in which the secured party has an unperfected security interest, at least outside bankruptcy.

PROBATE

A legal procedure in which the validity and probity of a document, such as a will, is proven.

PROCEEDS

Whatever is received upon the sale, exchange, collection, or other disposition of collateral. Also includes privately held partnership interest distributions, rentals for the lease of goods, and licensing royalties, and claims arising out of the loss, nonconformity, or interference with the collateral.

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.

PROMISSORY NOTE (UCC)

Subcategory of instrument evidencing a promise to pay (rather than an order to pay, such as a check).

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

The taking by sale, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.

PURCHASE-MONEY SECURITY INTEREST (PMSI)

Security interest in collateral that is either taken by a supplier of that collateral to finance its purchase price or a security interest given to a third-party lender in the collateral purchased with the proceeds of the lender's loan.

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.

PURCHASER

A person who takes by purchase.