Offer

A promise the buyer makes to buy property under the terms set forth in the DROA if the seller accepts those terms.

 

Open house

A marketing tool in which a listing agent opens a house for viewing.

 

Option

A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.

 

Oral agreement

Contractual arrangements that are not in writing and are usually not legally binding.

 

Origination fee

A fee charged by most lenders--also called points--for processing a loan.  A point is 1 percent of the total loan amount.

 

Owner financing

A transaction in which the seller of a property agrees to finance all or part of the purchase.