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OBLATORY ADVANCE An advance made according to terms of a pre-existing construction loan agreement or mortgage. OFFER TO PURCHASE A written proposal to purchase real estate that becomes binding upon acceptance of the vendor. OPEN END MORTGAGE A mortgage under which the lender has the option of advancing more funds where, for example, the value of the property is anticipated to increase. OPEN OR CLOSED The restriction or denial of repayment rights until the maturity of the mortgage is a closed mortgage. If specified on document as open, then mortgagor can pay extra payments of principal sums at any time or at specified times, with or without repayment penalty. OPERATING EXPENSES Generally speaking, all expenses, occurring periodically, which are necessary to produce net income before depreciation. Under some conditions these expenses are placed in two categories, namely, operating expenses and fixed charges. OPTION A right give by the owner of property to another (for valuable consideration) to buy certain property within a limited time at an agreed price. ORDER ABSOLUTE Judgement taken against a mortgagor, extinguishing the equity of redemption. OWNER The lawful possessor of the title to real property. |