Glossary - P

P.M.I. (Private Mortgage Insurance)
An insurance contract which insures that the named lender will re cover a specific percentage of the loan amount from the insurer in the event the loan goes bad. Many lenders require this on higher percentage loans.

 

Party Wall
A wall erected on the line between two adjoining properties which are under different ownership, for use by both properties.

 

Patent
A document or grant by which the federal or state government originally transferred title to public lands to an individual. The first in the series of transfers by which title comes down to present owners.

 

Personal Representative
A person appointed by the probate court to administer a decedent’s estate.

 

Plat or Plot
A map representing a piece of land subdivided into lots with streets shown thereon.

 

Points
A one-time special fee or extra charge paid to a lender in order to secure a loan. Expressed as a percentage of face amount of mortgage.

 

Policy
A written contract of title insurance.

 

Policy Owner
The insured on a title insurance policy.

 

Power of Attorney
An instrument authorizing another to act on one’s behalf as his or her agent or attorney.

 

Power of Sale
A clause in a will, mortgage, deed of trust or trust agreement authorizing the sale or transfer of land in accordance with the terms of the clause.

 

Prorate
To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums.

 

Purchase Money Mortgage
A mortgage given by the purchaser to secure a loan for part or all of the purchase price. Such a mortgage becomes a lien on the property simultaneously with the passing of title, and if promptly recorded becomes prior to any lien against the purchaser.

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