| Term | Definition |
|---|
| net listing | A price, which must be expressly agreed upon, below which the owner will not sell the property and at which the broker will not receive a commission; the broker receives the excess over and above the net listing price as commission. The broker in this type of listing will have a very hard time maintaining his fiduciary responsibilities to his seller since his interests are potentially at odds with the interests of the seller. |
| non-escrowing loan | Typically, mortgage lenders require escrow accounts for property taxes, hazard insurance, and sometimes, homeowner's association dues. Monthly contributions to these accounts are rolled into a lender's mortgage payment. Most lenders only allow non-escrowing loans on mortgages with an 80% or lower, loan-to-value ratio. |
| note | A written instrument of credit attesting to a debt and promise to pay. |
| nuisance | Something that interferes with the use of property by being irritating, offensive, obstructive or dangerous. Nuisances include a wide range of conditions, everything from a chemical plant's noxious odors to a neighbor's dog barking. The former would be a "public nuisance," one affecting many people, while the other would be a "private nuisance," limited to making your life difficult, unless the dog was bothering others. Lawsuits may be brought to abate (remove or reduce) a nuisance. See quiet enjoyment, attractive nuisance. |
| obsolescence | A loss in value of real property caused by changes either internal or external to the property. See economic obsolescence, functional obsolescence, and physical deterioration. |
| offer | A proposal to enter into an agreement with another person. An offer must express the intent of the person making the offer to form a contract, must contain some essential terms--including the price and subject matter of the contract--and must be communicated by the person making the offer. A legally valid acceptance of the offer will create a binding contract. |
| open house | An opportunity for prospective buyers to view a house in a low pressure environment. |
| open listing | A listing under which the principal (owner) reserves the right to list his property with other brokers. |
| option | The right to purchase property within a definite time at a specified price. There is no obligation to purchase, but the seller is obligated to sell if the option holder exercise the right to purchase. For the option to be valid, it must include consideration. |
| option fee | An amount of money payed by a prospective Buyer, to a Seller, in order to obtain an option period. If a Buyer decides to close on the property, the option fee may be credited to his funds at closing. |
