PAROL

Orally, by word of mouth.  For example, if a landowner gives another verbal permission to gather firewood from such land, or permission to hunt game thereon, such 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 title industry parlance, 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.

PARTY WALL

A wall built along the boundary line of adjoining properties and shared by the respective property owners or tenants.

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.

PERSONAL PROPERTY

Temporary or movable property as distinguished from real estate.

PERSONALTY

Personal property.

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 and Mortgagee Policy.

POWER OF ATTORNEY

A legal instrument authorizing one to act as another's agent or attorney.

PRELIMINARY CERTIFICATE

See Binder.

PREMIUM

(1) The amount payable for an insurance policy.  (2) A sum of money or bonus paid in addition to the regular price.

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.

PRINCIPAL

(1) A sum of money owed as a 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.

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 RECORDS

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

PUBLIC TRUSTEE

A public official to whom title to real estate may be conveyed by trust deed to be held by him as security for repayment of a loan.  Usually found in areas where trust deeds are used as security instruments in lieu of mortgages.

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.