Glossary O

OFFER
A proposal; after acceptance it becomes a contract.

OPTION
A right given for a consideration to keep an offer to purchase or lease open for specific time.

OPTION TO PURCHASE
A legal agreement offered by the vendor to the purchaser detailing the terms and conditions of the sale of property. If accepted by the purchaser with an option deposit also known as consideration, the vendor is legally bound by the contract to give the purchaser a further cooling off period to reconsider the purchase.

OVERDRAFT
Is a credit facility on a revolving basis that may be secured by the mortgage of a property.

ORIGINATION FEE
A fee paid to a lender for processing a loan application. It is stated as a percentage of the mortgage amount.

OUTSIDE CENTRAL AREA
It comprises the Fringe Area (part of Central Region), East Region, North East Region, North Region and West Region.

OWNER FINANCING
A property purchase transaction in which the property seller provides all or part of the financing.
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