O

Obligee - One to whom an obligation (promise) is owned.

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

Order - A request for a title insurance commitment.

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.

Owner's Title Insurance - Title insurance for the owner of property, rather than a lienholder.

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

Personal Property Loan - A loan which is secured by both real and personal property. The minimum ratio of personal to real property is set by law. The credit of the borrower is a major consideration in making the loan. (See also Equity Loan).

"P.I.Q." - A title term referring to Property In Question.

PITI - A payment that combines Principal, Interest, Taxes, and Insurance.

Plat - A plan, map or chart of a tract or town site dividing a parcel of land into lots.

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.

"Pre," "Prelim" or Preliminary Report - A written report issued by a title company, preliminary to issuing title insurance, which shows the recorded condition of title of the property in question. See Commitment.

Prescriptive Easement - The granting of an easement by a court, based on the presumption that a written easement was given (although none existed), after a period of open and continuous use of land.

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.

Processor - One who prepares documents to facilitate closing.

Public Domain - Land owned by the government and belonging to the community at large.

Public Records - The transcriptions in a recorder's office of instruments which have been recorded, including the indexes pertaining to them.

Q

Quitclaim Deed - A deed operating as a release; intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.

Quiet Title - To free the title to a piece of land from the claims of other persons by means of a court action called a "quiet title" action. The court decree obtained is a "quiet title" decree.

R

Real Property(immovable) - Land, from the center of the earth and extending above the surface indefinitely, including all inherent natural attributes and any man-made improvements of a permanent nature place thereon. For example: minerals, trees, buildings, appurtenant rights.

Realtor - A designation given to a real estate broker or sales-associate who is a member of a board associated with the National Association of RealtorsÒ or with the National Association of Real Estate Boards.

Reconveyance - An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

Recording - Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.

Reinsurance - A contract which one insurer makes with another to protect the first insurer, wholly or partially, against loss or liability by reason of a risk under a separate and distinct contract as insurer of a third party.
Reinsurance differs from coinsurance in that, in the case of reinsurance, only one insurer has a direct contractual relationship with the insured, and that insurer (commonly referred to as the "lead insurer") purchases reinsurance in order to lessen or spread the risk. The "lead insurer" will assume a risk up to a limit (the amount of which is referred to as the "retention") and any loss which exceeds this limit would be borne by the reinsurers.
In the case of coinsurance, each coinsurer has a direct contractual relationship with the insured, and the risk is shared in agreed-upon proportions from the first dollar of loss.

Requirement - A demand or need; in title insurance a requirement is listed on the commitment and must be satisfied before closing.

Restrictions - Often called restrictive covenants. Provisions in a deed or other instrument whereby an owner of land prohibits or restricts certain use, occupation or improvement of the land.

Right of Way - (1) The right to pass over property owned by another, usually based upon an easement. (2) A path or thoroughfare over which passage is made. (3) A strip of land over which facilities such as highways, railroads or power lines are built.

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