Terms Beginning With - O
Property Development & Investment Glossary, Terms & Definitions
Obligee
A person who is obligated to someone else.
Obligor
A person who owes money to someone else.
Obsolescence
Changes in design, technology, taste, or demand cause a decrease in property value.
Occupancy level
The proportion of available space that is currently rented.
Offer to purchase
A buyer's purchase offer, which becomes a legally binding document if accepted.
Off-price shopping center
A shopping complex made up of retail establishments that sell name-brand products often available in specialised shops and department stores for 20 percent to 70 percent less than the manufacturer's suggested retail price.
One-hundred percent location
When compared to other locations in a market area, this is the place where a retail store would generate the largest sales volume.
Open-ended mortgage
A mortgage established to ensure the advance of additional cash beyond the amount originally disbursed.
Open listing
A listing agreement in which the broker's compensation is contingent on the broker finding a buyer before the owner or another broker sells the property.
Open mortgage
A mortgage that has reached the end of its term or is past due, putting it in risk of foreclosure at any time.
Operating expense ratio
Total operating expenditures divided by effective gross income is known as the ratio of total operating expenses to effective gross income.
Operating expenses
The costs of owning and operating a property.
Operating lease
A sublease is a contract between a lessee and a person who actually occupies and utilises the property.
Operating leverage
A financial strategy in which a little increase in gross income leads to a significant rise in net operating income.
Operating statement
The financial statement for an income property that shows the revenue and costs.
Opinion letter
An attorney's written opinion on the tax and legal implications of particular aspects of syndication.
Opinion of title
A certificate, generally signed by an attorney, stating that the title to the property being sold is legal.
Option
The right to buy or lease property at a certain price and for a predetermined length of time.
Option fee
The amount paid by the optionee in order to get an option.
Option price
The agreed-upon price at which the optionee is willing to purchase the option.
Oral contract
The agreement was made verbally.
Ordinary income
Any income that is taxed at standard tax rates, such as fees, commissions, and interest, as defined by the Internal Revenue Service.
Ordinary loss
Loss that can be deducted from ordinary income for tax purposes.
Organizational fee
A fee paid to a general partner for his assistance in forming a syndicate.
Origination fee
A fee imposed by a mortgage lender for services performed in the processing of a loan application.
Other income
The revenue from an income property that is not earned through the leasing of a tenant space.
Other people's money (OPM)
Borrowed money are used for investing reasons.
Outstanding loan balance
The amount of money owed on a debt right now.
Overage lease
In certain retail leases, an additional rental is levied depending on a percentage of sales above a set sales base.
Overall capitalization rate
The net operational income divided by the total costs or sales price is a good investing rule of thumb.
Overall rate of return (ORR)
The capitalization rate is the proportion of net operating income divided by the property's acquisition price.
Overimprovement
A land or building usage that is seen to be excessive.
