|
Real Estate Glossary
This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.
Obedience - An agent is obligated to promptly and
efficiently obey all lawful instructions of his/her principal that conform
to the purpose of the agency relationship. However, the duty does not
include an obligation to obey unlawful instructions, such as instructions
to not market a property to minorities or to misrepresent the condition
of a property.
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 - .
Open End Mortgage - A mortgage permitting
the mortgagor to borrow additional money under the same mortgage, with
certain conditions, usually, as to the assets of the mortgage.
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.
Origination Fee - A fee or charge for work
involved in the evaluation, preparation and submission of a proposed mortgage
loan. Usually a percentage of the loan amount.
Owners Title Policy - Title insurance
for the owner of property. Insurance to defend the owner against enforcement
of any liens or encumberances against the property that were in place
prior to the issuance of the policy. CAUTION: Never purchase a property
without obtaining an Owners Title Policy. The issuer of the policy will
research the legal records for any existing liens or encumbrances prior
to issuing the policy. Without this search and the issuance of the title
policy you will be liable for the payment of any liens that exist on the
property.
|