| Term | Definition |
|---|
| 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. |
| patio home | A single-family home that sits on a small lot, often with one outside wall of the structure sitting on the property line. Patio homes have no common structural walls with adjoining propeties, but their zero lot line wall may form part of their neighbors backyard fence/wall. These properties often have a small back or side yard large enough for a patio or garden area. Also known as a garden home. |
| percentage lease | Lease in which all or part of rental is a specified percentage of gross income from total sales made upon the premises. |
