Real Estate Glossary

Occupancy Cost

Charge to tenant, pursuant to its lease, such as rent, operating expense increases, parking charges, moving expenses, remodeling costs, etc.

Offer to Purchase

A commitment on the part of the buyer to enter into a contract of sale. Acceptance of the offer does not create a contract until a copy of the accepted offer is transmitted to the offeror or his agent.

Online real estate listings

Properties listed for sale on the Internet.

Open house

A marketing tool in which a listing agent opens a house for view.

Open listing

A property given to a number of brokers to market at the same time.

Open space

Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.

Operating Expenses

The necessary costs of maintaining an income property, including taxes, insurance, management fees, repairs, etc. This does not include debt service on the property.

Option

A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.

Options (in a lease)

A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.

Oral agreement

Contractual arrangements that are not in writing and are usually not legally binding.

Original principal balance

The amount of principal owed on a loan before a borrower makes any payments.

Origination fee

A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.

Owner financing

A transaction in which the seller of a property agrees to finance all or part of the purchase.