| Obsolescence |
A loss in value of real property caused by changes either
internal or external to the property. |
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| Occupancy |
The use of a property as a full-time residence, either by the
title holder (owner-occupancy) or by another party through a formal agreement
(rental). |
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| Offer |
A proposal to purchase real estate at a particular price,
subject to other specified terms and conditions. Acceptance of the offer by the
seller creates a purchase contract. A counteroffer is a different offer made in
response to the initial offer. |
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| Open End Mortgage |
A mortgage permitting the mortgagor to borrow additional money
under the same mortgage, with certain conditions, usually, as to the assets of
the mortgage. |
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| Open House |
An opportunity for prospective buyers to view a house in a low
pressure environment. |
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| Open Listing |
A listing under which the principal (owner) reserves the right
to list his property with other brokers. |
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| Option |
The right to purchase property within a definite time at a
specified price. There is no obligation to purchase, but the seller is
obligated to sell if the option holder exercise the right to purchase. For the
option to be valid, it must include consideration. |
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| Original Principal Balance |
The total amount of principal owed on a mortgage before any
payments are made. |
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| Origination Fee |
A fee paid to a lender for processing a loan application,
making a home loan, and recording a mortgage against the borrower's real
property as security for repayment of the loan. The origination fee is stated
in the form of points. One point is 1% of the mortgage amount (e.g., 1,000 on a
$100,000 loan). |
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| Owner Financing |
A property purchase transaction in which the property seller
provides all or part of the financing and takes back a security instrument.
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| Owner of Record |
The person named in the public record as the owner of a
property or mortgage. |
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| Owners Policy |
Title insurance for the owner of property, rather than a
lienholder. |