| Term | Definition |
|---|
| 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. |
| ordinance | A law adopted by a town or city council, county board of supervisors or other municipal governing board. Typically, local governments issue ordinances establishing zoning and parking rules and regulating noise, garbage removal, and the operation of parks and other areas that affect people who live or do business within the locality's borders. |
| origination fee | A fee charged by lenders, in addition to interest, for services in connection with granting of a loan. Usually a percentage of the loan amount. |
| panic peddling | The illegal practice of inducing panic selling in a neighborhood by making representations of the entry, or prospective entry, of members of a minority group; blockbusting. See Fair Housing. |
| party wall | Wall erected on line between adjoining properties for the use of both properties. |
