Parcel acting weird - "bleeding"

I have a large subdivision design project that I am trying to use parcels with for the first time. The drawing is set up with three parcel styles on the same site (R.O.W., Property and Open Space). I am attempting to split the right of way parcel into different pieces based on my drainage areas within the subdivision and at certain locations, when I draw a parcel segment across the street to split the R.O.W. parcel, it "bleeds" the R.O.W. parcel into the entire subdivision area. Very odd. It seems to only happen when partitioning the R.O.W. parcel along the perimeter street of the subdivision. Maybe CAD is getting confused as to what is the outside and inside of the box...

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