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Flashcards in O Terms Deck (21):
1

objective value

Market value as opposed to subjective value, which is use value.

2

observed condition method

The method of determining the effective age of a property by its condition.

3

obsolescence

Loss in value due to reduced desirability because of built-in design (functional obsolescence) or forces outside the property itself (external obsolescence).

4

occupancy permit

Permit issued by a building inspector when a new structure has been completed in accordance with codes.

5

offset statement

A statement by a lender as to the current status of a loan (balance due). See beneficiary statement.

6

"or more" clause

A provision that allows prepayment without penalty.

7

one-stop shopping

A brokerage firm that handles financing and closing functions. See controlled business arrangement.

8

open listing

A nonexclusive agency whereby the owner agrees to a fee only if the broker is the first to procure a buyer under the exact terms of the listing or any other terms to which the owner agrees.

9

over-improvement

An improvement that cannot be recaptured by increased income or sale value.

10

ostensible agency

An agency that is implied by the actions of the parties.

11

origination point

Fees charged by mortgage brokers for services.

12

orientation

The way a structure is placed on a site.

13

optionor

The owner who gives the option.

14

order paper

A note payable to a named person or order that allows it to be negotiated by endorsement.

15

open market transaction

Federal Reserve action in buying and selling federal securities on the open market.

16

optionee

The party who purchased the option, and has the right to exercise it.

17

option

A noncancelable right given by an owner to another to buy or lease a property at an agreed-on price within a stated period. To be valid, consideration must have been given to keep the offer open.

18

open mortgage

(1) A loan that can be prepaid without penalty. (2) A mortgage in default before the foreclosure sale.

19

option arm

Adjustable rate loan with borrower's option to make a minimum payment.

20

opportunity cost

The loss of other opportunities by making an investment; for example, a long-term, low-yield investment could result in illiquidity whereby the investor would have to forgo a later, more attractive investment opportunity.

21

open-end mortgage

A mortgage that can be increased in the future up to an agreed-on maximum amount. Also see dragnet clause.