| Obsolescence - As applied to real estate, it is the loss or impairment of value due to becoming outmoded and/or less useful as a result of social or economic changes. See Economic Obsolescence
and Functional Obsolescence. |
| Offer - A promise by one party to another party to perform a specified act provided that the other party promises to perform some specified act in return. An offer may be either an "offer to purchase" or an "offer to sell." |
| Offeree - The person to whom an offer is made. |
| Offeror - The person making an offer. |
| Oil and Gas Lease - A lease transferring the right to extract oil or gas from the real property of the lessor. |
| Omission - The willful or negligent failure to disclose a material fact to another party. See also Willful Omission
and Negligent Omission. |
| Open End Mortgage - A mortgage with an additional arrangement allowing the borrower to secure funds up to a certain amount in addition to the original amount borrowed. |
| Open Listing - A general listing given to a broker by an owner to sell his/her property. Such listing is not exclusive and may be given to a number of brokers at the same time. The owner is not precluded from selling the property during the term of the listing, and, if the owner procures a purchaser, she/he is under no obligation to pay any commission. Only the broker who produces a purchaser is entitled to receive compensation for effecting a sale under this type of listing. A sale by one broker terminates all other such listings. |
| Operating Budget - A detailed statement of projected income and expenses for a specified period of time. |
| Operating Expenses - All expenses or costs of operating a property except for debt service, capital expenditures, and depreciation. |
| Opinion of Title - See Certificate of Title. |
| Option - A privilege sold by a property owner (optionor) to another (optionee) giving to the optionee, in return for the payment of a consideration, a right to buy or not to buy a property within a specified period of time at a specified price. Also called an option to purchase or an option contract. |
| Option to Renew - In landlord-tenant law, the right given to tenants in some leases to renew the tenancy for an additional term. |
| Ordinance - A law passed by the governing body of a county or city acting under authority granted by the state legislature. |
| Ordinary Gain/Loss - For income tax purposes, any gain/loss that is not a capital gain/ loss. |
| Origination Fee - A one-time fee charged to a borrower by a lender for making a mortgage loan. This fee is usually computed as a percentage of the loan amount. Also called loan origination fee. |
| Overimprovement - An improvement that is not the highest and best use for the site on which it is placed by reason of excess in size or cost |
| Overlay Zoning District - In zoning practice, a district or zone that superimposes a certain zoning use over the existing traditional zoning map. A historic preservation zone, for example, might be superimposed over existing traditional zones. |
| Override Clause - An override or extender clause is a provision in a list that protects the real estate broker in the event that the property owner and a prospective purchaser postpone the ultimate purchase in order to avoid paying a brokerage commission. It provides that, if the property is sold within a certain period of time after expiration of the listing contract to a prospect that the broker found during the listing period. A commission is payable. Also called extender clause. |
