OBSOLESCENCE
Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. May be functional or economic.

OFFER TO PURCHASE
The proposal made to an owner of property by a potential buyer to purchase the property under stated terms.

OFFSET STATEMENT
Statement by owner of property or owner of lien against property setting forth the present status of liens against said property.

OPEN-END MORTGAGE
A mortgage containing a clause which permits the mortgagor to borrow additional money after the loan has been reduced without rewriting the mortgage.

OPEN HOUSING LAW
Congress passed a law in April 1968 which prohibits discrimination in the sale of real estate because of race, color, or religion of buyers.

OPEN LISTING
An authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer.

OPINION OF TITLE
An attorney's written evaluation of the condition of the title to a parcel of land after examination of the abstract of title.

OPTION
A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.

ORAL CONTRACT
A verbal agreement; one which is not reduced to writing.

ORIENTATION
Placing a structure on its lot with regard to its exposure to the rays of the sun, prevailing winds, privacy from the street and protection from outside noises.

OSTENSIBLE AUTHORITY
That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal.

OVERIMPROVEMENT
An improvement which is not the highest and best use for the site on which it is placed by reason of excess size or cost.

OWNERSHIP
The right of one or more persons to possess and use property to the exclusion of all others. A collection of rights to the use and enjoyment of property.