Glossary

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There are 24 names in this directory beginning with the letter O.
Obligatory Advances
Disbursements of con_struction loan funds that the lender is obligated to make (by prior agreement with the borrower) when the borrower has completed certain phases of construction.
Obsolescence
Any loss in value (depreciation) due to reduced desirability and usefulness.
Obsolescence, Functional
Loss in value due to inadequate or outmoded equipment, or as a result of a poor or outmoded design.
Off-Site Improvements
Improvements that add to the usefulness of a site but are not lo_cated directly on it, such as curbs, street lights, and sidewalks.
Offer
The action of one person (the offerer) in proposing a contract to another (the offeree); if the offeree accepts the offer, a binding contract is formed.
Offer, Illusory
An offer that is not a valid con_tract offer, because it requires something more than simple acceptance in order to create a con_tract.
Offeree
One to whom a contract offer is made.
Offerer
One who makes a contract offer.
Officer
In a corporation, an executive autho_rized by the board of directors to manage the business of the corporation.
Option
A right given for a consideration to purchase or lease a property upon specific terms within a specific time; if the right is not exercised, the option holder is not subject to liability for damages; if exercised, the grantor of the option must perform.
Option to Purchase
An option giving the op_tionee the right to buy property owned by the optionor at an agreed price during a specified period.
Optionee
The person to whom an option is given.
Optionor
The person who gives an option.
Ordinance
A law passed by a local legislative body, such as a city council.
Orientation
The placement of a house on its lot, with regard to its exposure to the sun and wind, privacy from the street, and protection from outside noise.
Origination Fee
A fee a lender charges a bor_rower upon making a new loan, intended to cover the administrative costs of making the loan.
Originator
An individual who works with a borrower to start a loan. Usually an employee of a financial institution, an employee of a broker or an independent contractor affiliated with several brokers, the originator determines the type of loan a borrower probably qualifies for, helps complete an accurate application, gathers documents necessary to get an approval and acts as an intermediary between the borrower and the underwriter.
Outlawed
Barred by the statute of limitations.
Overimprovement
An improvement that is more expensive than justified by the value of the land.
Override (Broker Protection) Clause
A clause in a listing agreement providing that for a specified period after the listing expires, the broker will still be entitled to a commission if the property is sold to someone the broker dealt with during the listing term. Also called a carryover clause, extender clause, or safety clause.
Owner's Policy
Protects the purchaser and the purchaser's heirs for as long as they have an interest in the property.
Ownership
Title to property, dominion over property; the rights of possession and control.
Ownership in Severally
Ownership by one in_dividual or entity; sole ownership.
Ownership, Concurrent
Shared ownership of one piece of property by two or more individuals, each owning an undivided interest in the property (as in a tenancy in common or joint tenancy). Also called multiple ownership, co-ownership, or co-tenancy.