Real Estate Definitions - O


OAR:
Oregon Administrative Rule, a rule or regulation issued by a State Agency. The type of rules which govern licensees' actions.
Obsolescence:
Becoming out-of-date either functionally or economically. In appraisal, obsolescence is either curable or incurable.
ODVA Loan:
(Oregon only) A loan issued to eligible veterans by the Oregon Department of Veteran's Affairs.
Offset Statement:
(Estoppel Certificate) A special type of Lender's Statement showing the net amount owing on the loan after tax and insurance reserves are deducted.
One Hundred Percent Location:
The Southwest corner of an intersection:
The ideal location for a business.
Open End Loan:
A loan in which the borrower has established a maximum line of credit with the lender. The borrower can borrow additional amounts, as needed, without rewriting the loan each time.
Open Listing:
A listing agreement that is open to several different Brokers. Each must have a written agreement and the Broker who is the "procuring cause" of a sale is the only Broker who will receive a commission.
Operating Budget:
The written schedule of the operating expenses of a given property.
Operating Expenses:
In appraisal, those normal recurring costs that apply to a given property. Mortgage payments are not an operating expense because they are personal to the current owner. (The owner could have paid cash.) Depreciation is not an operating expense because you do not actually spend those dollars.
Option:
A written, unilateral contract where one party purchases the exclusive right, for a stated period of time, to be able to buy or lease a specific property.
Option Fee:
The fee paid for the option right. It is not refundable and is fully earned by the property owner whether or not the option is exercised. It is a form of liquidated damages.
Oregon Real Estate Board:
An appointed Board that causes to be prepared the Real Estate exam, the Pass-Fail List, and advises the Commissioner on how best the Real Estate Agency can serve the public.
Oregon Subdivision Control Law:
An Oregon law that allows the Real Estate Commissioner to control the advertising used when selling certain subdivision lots.
Oregon Subdivision Regulation:
An Oregon law that allows local governments to approve the creation of subdivisions and partitions that occur in their community.
original principal balance
The total amount of principal owed on a mortgage before any payments are made.
origination fee
On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called "discount points." One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.
ORS:
Oregon Revised Statute, Statutory Law passed by the Oregon State Legislature.
Owner's Title Insurance Policy:
A standard Title Insurance Policy purchased by the seller at the time of closing. It insures the buyer or his heirs for as long as they have an ownership interest, up to the purchase price, for certain flaws in title that arise from records that were claimed to have been searched.
owner financing
A property purchase transaction in which the property seller provides all or part of the financing.
owner will carry (OWC)
A term indicating the willingness of a seller of real property to extend financing to a qualified buyer. The financing may take the form of a first trust deed or secondary financing. It may be short or long term.