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| Obligee | The person who will receive the outcome of an obligation. |
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| Obligor | An individual who has engaged to perform an obligation to another person (i.e., obligee). |
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| Obsolescence | A type of depreciation of property. |
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| Offer | A promise by one party to act or perform in a specified manner provided the other party will act or perform in the manner requested. |
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| Offer and Acceptance | The two components of a valid contract; a "meeting of the minds." |
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| Office Exclusive | A listing in which the seller refuses to submit the listing to Multiple Listing Service, even after being informed of the advantages of MLS, and signs a certification to that effect. |
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| Offsite Costs | Costs such as for sewers, streets, utilities, etc., which are incurred in the development of raw land, but are not connected with the actual construction of the buildings(onsite costs). |
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| Open House | The common real estate practice of showing a listed home to the public during established hours, frequently on Sunday afternoons. |
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| Open Listing | A listing given to any broker without liability to compensate any broker except the one who first secures a buyer who is ready, willing, and able to meet the terms of the listing, or secures the acceptance by the landlord of a satisfactory offer; the lease of the property automatically terminates the listing. |
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| Open Space | An unimproved area of land or water, or containing only such improvements as are appropriate to the use and enjoyment of the open area, and dedicated for public or private use or enjoyment or for the use and enjoyment of owners and occupants of land adjoining or neighboring such open spaces. |
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| Open-End Mortgage | A mortgage in which the borrower is given a limit up to which he may borrow, with any incremental advances of money up to but not exceeding the original borrowing limit to be secured by the same mortgage. |
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| Operating Cost Escalation | Although there are many variations of escalation clauses, all are intended to adjust rents by reference to external standards such as published indexes, negotiated wage levels, or expenses related to the ownership and operation of buildings. During the past thirty years, Landlords have developed the custom of separating the base rent for the occupancy of the leased premises from escalation rent. This technique enables the landlord to better ensure that the “net” rent to be received under the lease will not be reduced by the normal costs of operating and maintaining the property. The landlord’s definition of Operating Expenses is likely to be broad, covering most costs of operation of the building. Most landlords pass through proper and customary charges, but in the hands of an overly aggressive landlord, these clauses can operate to impose obligations which the tenant would not willingly or knowingly accept. |
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| Operating Costs | Expenses related to the building and property. Typically includes electricity, water, gas, janitorial, parking lot sweeping, landscape maintenance, building maintenance (except major renovations), real estate taxes, insurance, and management fees. These items should be detailed in the lease document in order to avoid confusion. |
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| Operating Expense Escalation | Although there are many variations of operating expense escalation clauses, all are intended to adjust rents by reference to external standards such as published indexes, negotiated wage levels, or expenses related to the ownership and operation of buildings. |
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| Operating Expenses | The actual costs associated with operating a property including maintenance, repairs, management, utilities, taxes and insurance. A landlord’s definition of operating expenses is likely to be quite broad, covering most aspects of operating the building. |
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| Opinion of Title | An opinion by a person competent in examining titles, usually a title attorney, as to the status of the title of a property. |
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| Option | A right given to purchase or lease a property upon specified terms within a specified time. If the right is not exercised, the option holder is not subject to liability for damages. If the holder of the option exercises it, the grantor of option must perform the option's requirements. |
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| Options to renew | The right of a tenant to extend their occupancy beyond the original term. The rental rate may or may not be pre-set. Can be useful for a Tenant so they are not forced to re-locate. |
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| Origination Fee | The finance fee charged by a lender for placing a mortgage, which covers initial costs such as preparation of documents and credit, inspection and appraisal fees. |
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| Over improvement | An improvement which by reason of excess size or cost is not the highest and best use for the site on which it is placed. |
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| Overages | This term refers to the increase in the cost to operate the property from one year over the last. If it cost $5 per foot per year (for electric, water, janitor, taxes, etc) last year, and $5.40 per foot this year, then the overages are $.40 per foot per year. The tenant would be responsible to pay this overage to the Landlord, based on the size of the space they have. |
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| Override | A commission paid to managerial personnel (e.g. principal broker) on sales made by their subordinates, usually calculated as a percentage of the gross sales commissions earned by the salesperson. |
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| Owners Agent | A licensed Real Estate agent working to get the best deal for the Owner or Landlord. Frequently referred to as the Listing Agent. |
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