O Terms Flashcards
objective value
Market value as opposed to subjective value, which is use value.
observed condition method
The method of determining the effective age of a property by its condition.
obsolescence
Loss in value due to reduced desirability because of built-in design (functional obsolescence) or forces outside the property itself (external obsolescence).
occupancy permit
Permit issued by a building inspector when a new structure has been completed in accordance with codes.
offset statement
A statement by a lender as to the current status of a loan (balance due). See beneficiary statement.
“or more” clause
A provision that allows prepayment without penalty.
one-stop shopping
A brokerage firm that handles financing and closing functions. See controlled business arrangement.
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.
over-improvement
An improvement that cannot be recaptured by increased income or sale value.
ostensible agency
An agency that is implied by the actions of the parties.
origination point
Fees charged by mortgage brokers for services.
orientation
The way a structure is placed on a site.
optionor
The owner who gives the option.
order paper
A note payable to a named person or order that allows it to be negotiated by endorsement.
open market transaction
Federal Reserve action in buying and selling federal securities on the open market.
