Real Estate and Mortgage Terms Glossary

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Glossary Index

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Terms starting with Letter O

OBSOLESCENCE

The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.

OCCUPANCY

A physical presence within and control of a property.

OCCUPANCY RATE

The percentage of properties in a given area that are occupied.

OCTOPUS RECEPTACLE

An outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.

OFF-SITE IMPROVEMENTS

Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

OFF-STREET PARKING

Designated parking spaces associated with a particular building or other structure which are not located on public streets.

OLD TERMITE ACTIVITY

Where no termites are currently active, but indications of past activity can be seen.

ON-SITE IMPROVEMENTS

Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

OPEN HOUSE

A marketing tool in which the listing agent opens a house for review by potential buyers.

OPEN SPACE

Any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.

OPEN SPLICE

An uncovered electrical connection.

OPERATING EXPENSES

Recurring fixed expenses, such as rent, dues and fees, salaries, taxes and license fees, insurance and depreciation and variable expenses such as advertising and promotion, utilities, equipment and supplies and cost of sales.

OPTION

An agreement to keep open an offer to sell or purchase property for a set period.

ORIGINAL EQUITY

The amount of cash a home buyer initially invests in the home.

ORIGINAL PRINCIPAL BALANCE

The total amount of principal owed on a mortgage loan at the time of closing.

ORIGINATION FEE

Refers to the total number of points paid by a borrower at closing. See Loan Closing Costs

OVERIMPROVEMENT

An addition or change to property not in line with its highest and best use, or a betterment that exceeds that justified by local conditions.

OWNER FINANCING

A transaction where the property owner provides all or part of the financing.

OWNER OCCUPIED

The state of property wherein the owner occupies at least some portion of the property.

OWNER'S TITLE POLICY

A title insurance policy issued to a property owner. It protects the owner's equity against hidden title defects. See Title Insurance.

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