Southwest Florida Real Estate
Real Estate and Mortgage Terms Glossary
Real Estate and Mortgage transactions have languages all their own. Since most people don't use these terms on any type of a regular basis, we are providing this real estate and mortgage term glossary as a quick and easy reference for you to use. Rather than being unsure about a terms meaning, you can check here first. Of course, if you need a more in-depth understanding, please contact us directly and we'll be happy to assist you.
Glossary Index
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Terms - 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.