Your Online Legal Resource Center for Property Management

OCCUPANCY AGREEMENT - A written agreement between a seller an buyer, whereby for additional consideration (rent-), possession of the property is given to the buyer prior to closing; usually arranged on a day-by-day rental agreement.

OFFER - A written proposal of an offer to purchase, containing specified price and terms, which an owner may turn into a contract by accepting through his signature.

OFFERING SHEET - A lender's brief summary of a loan proposal.

OFFICE EXCLUSIVE - A listing which is not submitted to a cooperative multiple listing service on the written request of the seller; only the broker or broker's salespeople will be allowed to show the property and make a sale; not ethical if the broker belongs to the National Association of Realtors.

OFFICE OF INTERSTATE LAND SALES REGISTRATION - A HUD agency established to prevent fraud and misrepresentation on all property sold to out-of-state buyers; deals primarily with the promotion and sale of recreation property.

OFFSET STATEMENT - Statements given to purchasers of rental property, stating the terms and rent of a tenant and listing the balance of existing mortgages on the property.

OFF-SITE IMPROVEMENTS - Installation of streets, sewers, sidewalks, electrical power, and water of the benefit of adjoining property.

ONE HOUR DOOR - A door constructed to resist fire for at least one hour.

ONLINE REAL ESTATE LISTING - Properties listed for sale on the Internet.

ON-SITE IMPROVEMENTS - Installation of streets, sewers, sidewalks, electrical power, and water for the benefit of adjoining property.

OPEN-END MORTGAGE - A mortgage which may have additional sums added to it as the value of the property increases, based on the owner's equity.

OPEN HOUSE - A marketing tool in which a listing agent opens a house for view.

OPEN HOUSING - Housing available for all types and kinds of buyers without discrimination.

OPEN LISTING - A property given to a number of brokers to market at the same time.

OPEN SPACE - Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.

OPERATING EXPENSES - Ordinary expenses of operating an income property, such as taxes, insurance, upkeep, utilities, etc.

OPERATIVE BUILDER - A builder who builds a home on the speculation that he will find a buyer for it upon completion.

OPTION - A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.

OPTIONEE - The person granting the option; prospective buyer.

OPTIONOR - The person granting the option; owner.

ORAL AGREEMENT - Contractual arrangements that are not in writing and are usually not legally binding.

ORAL CONTRACT - A spoken agreement; may not be binding in regard to real estate transactions.

ORDINARY AND BUSINESS EXPENSE - Business expenses for rent, supplies, etc., which may be deducted during the tax year in which they are paid, rather than spread over a period of years, such as a capital expense.

ORDINARY INCOME - As opposed to capital gains, income derived during a tax year, such as for wages, salaries, or business profit which is taxed at regular rates, rather than at the reduced rate.

ORDINARY REPAIRS - Maintenance repairs on a structure to keep it in good condition.

ORIENTATION - Deciding the best relationship of a structure to the land on which it is to be placed.

ORIGINAL COST - The current owner's purchase price of property.

ORIGINAL PRINCIPAL BALANCE - The amount of principal owed on a loan before a borrower makes any payments.

ORIGINATION FEE - A fee charged by most lenders also called points for processing a loan. A point is one percent of the total loan amount.

OR MORE CLAUSE - A clause which enables a borrower to repay a loan early, with no prepayment penalty.

OSTENSIBLE AGENCY - An agency established by law when one party acts as principal on behalf of another without written authority, but with suggested authority.

OUTLAWED CLAIM - A claim that is no longer valid, if the time allowed by stature has passed, for making it.

OVERALL PROPERTY TAX LIMITATION - A fixed percentage of actual value which may be levied against a property for taxes.

OVERHANG - A protruding structural feature.

OVER-IMPROVEMENT - Improvements made to property in a poor location, which may not be recovered upon sale.

OVERRIDE - A percentage of sales over and above a stated lease rental.

OWNER FINANCING - A transaction in which the seller of a property agrees to finance all or part of the purchase.

OWNER OF RECORD - An owner whose title is recorded in county records.

OWNERSHIP - The right to assign, sell, use or enjoy possession of property over all others, except as restricted by zoning restrictions, liens or easements.

OWNER'S POLICY - Title insurance granted to an owner rather than a lender.