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Glossary of Terms - O

Offer:

A formal bid from a potential buyer to seller of a property to purchase the property.

Open House:

A situation where a real estate licensee representing the seller opens the seller’s property to members of the general public for viewing. 

Open Listing:

An authorization given by a property owner to a real estate licensee wherein said licensee is given the non-exclusive right to secure a purchaser for the property.  Open listings may be given to any number of licensees 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.

Option:

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

Oral Agreement:

A verbal agreement between parties to perform a specific act that is not reduced to writing.  Generally, an oral agreement to transfer real estate is unenforceable under the Statute of Frauds.

Original Principal Balance:

The total amount of principal owed on a mortgage before any payments are made.

Origination Fee:

A fee paid to a lender or broker to cover the administrative costs of processing a loan application. The origination fee typically is stated in the form of points. One point is one percent of the mortgage amount.

Owner Financing:

A transaction in which the property seller provides all or part of the financing for the buyer’s purchase of the property.

Owner-Occupied Property:

A property that serves as the borrower’s primary residence.