A-B

C-D

E-G

H-J

K-M

N-P

Q-R

S-T

U-Z

N

Negative Amortization

A condition created when a loan payment is less than the interest payment due. Even though payments are made on time, the amount of principal owed increases.

Notary Public

One who is authorized by the state or federal government, to administer oaths, and to attest to the authenticity of signatures.

Note

Evidence of the debt.  In context of secured loans, it is secured by the mortgage.

O

Obligee

One to whom an obligation (promise) is owed.

Obligor

One who legally binds (obligates) oneself, such as the maker of a promissory note.

Original Cost

The purchase price of property, paid by the present owner. The present owner may or may not be the first owner.

Owner’s Policy

A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against or unmarketability of the owner’s title.

Ownership

The right to possess and use property to the exclusion of others.

P

Parcel

Any area of land contained within a single description.

Partnership

An association of two or more persons who have contracted to join in business and share the profits.

Party Wall

A wall erected on a property boundary or between two lots for the common benefit and use of the property owners on either side.

Patent

A conveyance of title to land by the Federal or State Government.

Personal Property

Any property that is not designated by law as real property (e.g., money, goods, evidences of debt, rights of action, furniture, automobiles).

Personal Representative

A person appointed by the probate court to administer a decedent’s estate. See also “Executor”.

Plat

A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land and easements.

P.M.I.

Private Mortgage Insurance. An insurance contract which insures that the named lender will recover 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.

Points

A one-time-only fee you pay up front to your lender, sometimes in exchange for a slightly lower mortgage rate. One point equals one percent of the total amount you plan to borrow.

Policy

A general term used to describe all contracts of insurance.

Power of Attorney

A document by which one person (called the “principal”) authorizes another person (called the “attorney-in-fact”) to act for him/her in a specific manner in designated transactions.

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.

Premium

The amount paid for an insurance policy.

Prepayment

Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. The Federal Housing Administration does not permit such restrictions in FHA insured mortgages.

Prescriptive Easement

A right to use another’s property that is not inconsistent with the owner’s rights and that is acquired by an open, notorious, adverse and continuous use for the statutory period, for example 20 years.

Principal

The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.

Priority

The order of preference, rank or position of the various liens and encumbrances affecting the title to a particular parcel of land. Usually, the date and time of recording determine the relative priority between documents.

Priority Inspection

A title term referring to the type of inspection made in connection with insuring a new construction loan. In making the inspection of the property, the title company must be assured that the work of improvement had not yet begun when the lender’s deed of trust was recorded.

Pro rate

To allocate between seller and buyer their proportionate share of an obligation paid or due.

Public Records

The records of all documents, which are necessary to give notice and are available to the public.

Purchase Money Mortgage

A mortgage given by a purchaser to a seller on the subject property to secure payment of a part of the purchase price. 

Westcor Land Title Insurance Company does not guarantee complete accuracy of this dictionary.