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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.
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