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Owner's Policy

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

Plat

Also called "plat map." A map dividing a parcel of land into lots, as in a subdivision. A plat book contains the plat maps for a given area.

Point

Also called "commission points" or "discount points." One percent of the amount of the loan.

Preliminary Report

The Preliminary Report or "PR" is an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions. A Preliminary Report provides a list of the matters which will be shown as exceptions to coverage in a designated policy or policies of title insurance, if issued currently, covering a particular estate or interest in land. It is designed to provide an interim, or "preliminary" response to an application for title insurance and is intended to facilitate the issuance of the designated policy or policies. It is normally prepared after application (order) for such policy(ies) of title insurance on behalf of the principals to a real property transaction, for the purpose of facilitating requirements relative to closing and policy issuance in form and content approved by those parties. The Preliminary Report states on its face that it is made solely to facilitate the subsequent issuance of a title insurance policy and that the insurer assumes no liability for errors in the report. Accordingly, any claim arising from a defect in title must be made under the title policy and not the Preliminary Report.

Premium

The amount payable for an insurance policy.

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

A sum of money owed as a debt on which interest is payable. A person who empowers another to act as his representative or agent. The person having prime responsibility for an obligation as distinguished from one who acts as a surety or endorser.

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.

Quasi

To some degree, almost, partially, somewhat. Also resembling but not quite being the thing in question.

Quasi Contract

Contract implied by law, based on conduct.

Quiet Enjoyment

Right of an owner to enjoy his property without disturbance or interference of possession.

Quiet Title Suit

A lawsuit brought by an owner of real estate for the purpose of canceling, wiping out, and putting a quietus upon supposedly immaterial, inconsequential and unenforceable claims and interests which cloud his title.

Quietus

Final disposition, settlement, or elimination of a claim or debt.

Quit Claim Deed

A deed that does not imply that the grantor holds title, but that surrenders and gives to the grantee any possible interest or rights that the grantor may have in the property.

Real Estate

Also called "real property." Land and anything permanently affixed to the land, such as building, fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other such items that would be personal property if not attached. May refer to rights in real property as well as the property itself.

Real Estate Agent

Salespeople who assist buyers and sellers in the purchase and disposition of property are real estate agents. Most states require that prospective agents take a number of classes and pass a licensing exam in order to function in this role.

Real Estate Broker

Experienced real estate agents can become licensed as real estate brokers (also known as “principal” or “qualifying” brokers) so they can manage or own their own brokerage. Brokers usually must pass a state exam on real estate law to qualify.


Real Estate Owned (REO)

Properties that revert to a lender, typically a bank, after an unsuccessful foreclosure auction are Real Estate Owned. Banks commonly become owners of foreclosed properties because properties for sale at auctions often are worth less than the total amount owed to the bank via the mortgage. The minimum bid — the outstanding loan amount — is above market value. Banks try to sell REO properties at lower prices on their own or through an agent.


Realtor

A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

Recision

The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.

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