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Obsolescence
The loss of value due to factors that are outmoded or less useful. Obsolescence may be functional or economic.
Occupancy permit
A permit issued by the appropriate local governing body to establish that the property is suitable for habitation by meeting certain safety and health standards.
Offer and acceptance
Two essential components of a valid contract; a "meeting of the minds."
Office of thrift supervision(OTS)
Monitors and regulates the savings and loan industry. OTS was created by FIRREA.
Open-end loan
A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being secured by the same original mortgage.
Offer
A proposal to purchase property at a specified price and terms.
Open House
The common real estate practice of showing "For Sale" homes to the public during established hours.
Open house
An opportunity for prospective buyers to view a house in a low pressure environment.
Open listing
A listing under which the principal (owner) reserves the right to list his property with other brokers.
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.
Option fee
An amount of money payed by a prospective Buyer, to a Seller, in order to obtain an option period, as specified in Paragraph 7 of a TREC promulagated earnest money contract. If a Buyer decides to close on the property, the option fee may be credited to his funds at closing.
Option period
Current residential earnest money contracts, promulagated by the Texas Real Estate Commission offer the choice of an option period, under Paragraph 7. During this period, the length of which is negotiable, the Buyer has a right to inspect the property and has an absolute right to terminate the offer/contract for any reason, without penalty. In exchange for this option period, the Buyer pays an option fee to the Seller. If the Buyer decides to continue with the sale of the property, this option fee may be credited to him at closing. Typical option periods run from 7 to 14 days long.
Ordinance
A law adopted by a town or city council, county board of supervisors or other municipal governing board. Typically, local governments issue ordinances establishing zoning and parking rules and regulating noise, garbage removal, and the operation of parks and other areas that affect people who live or do business within the locality's borders.
Origination fee
A fee charged by lenders, in addition to interest, for services in connection with granting of a loan. Usually a percentage of the loan amount.
Original Principle Balance
The total amount of principal owed on a mortgage before any payments are made.
Origination Fee
On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called "discount points." One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.
Ostensible agency
A form of implied agency relationship created by the actions of the parties involved rather than by written agreement or document.
Owner Financing
A property purchase transaction in which the property seller provides all or part of the financing.
Owner's Title Policy
A policy protecting the buyer for the amount of the purchase price in the event of a future title dispute.
Owner of Record
A loss in value of real property caused by changes either internal or external to the property.