REAL ESTATE TERMS

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OBSOLESCENCE: Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. May be functional or economic.

OFFER TO PURCHASE: The proposal made to an owner of property by a potential buyer to purchase the property under stated terms.

OFFSET STATEMENT: Statement by owner of property or owner of lien against property setting forth the present status of liens against said property.

OPEN-END MORTGAGE: A mortgage containing a clause which permits the mortgagor to borrow additional money after the loan has been reduced without rewriting the mortgage.

OPEN HOUSING LAW: Congress passed a law in April 1968 which prohibits discrimination in the sale of real estate because of race, color, or religion of buyers.

OPEN LISTING: An authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer.

OPINION OF TITLE: An attorney's written evaluation of the condition of the title to a parcel of land after examination of the abstract of title.

OPTION: A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.

ORAL CONTRACT: A verbal agreement; one which is not reduced to writing.

ORIENTATION: Placing a structure on its lot with regard to its exposure to the rays of the sun, prevailing winds, privacy from the street and protection from outside noises.

OSTENSIBLE AUTHORITY: That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal.

OVERIMPROVEMENT: An improvement which is not the highest and best use for the site on which it is placed by reason of excess size or cost.

OWNERSHIP: The right of one or more persons to possess and use property to the exclusion of all others. A collection of rights to the use and enjoyment of property.

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