Glossary of Terms - O
A formal bid from a potential buyer to seller of a property to purchase the property.
A situation where a real estate licensee representing the seller opens the seller’s property to members of the general public for viewing.
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.
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.
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.
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.
A transaction in which the property seller provides all or part of the financing for the buyer’s purchase of the property.
A property that serves as the borrower’s primary residence.