Obsolescence:
The process of becoming obsolete or outdated and no longer used. Obsolescence is an integral part of basic steps to establish value and makes a property less desirable and less valuable for continued use in the marketplace.

Obsolescence is generally sorted in two categories:
Functional (curable or incurable); and
External (economic or location obsoloscence).

Occupancy Rate:
In real estate this is the number of units or space occupied in a building to the total number of units or space available.

Offer of Purchase and Sale:
A written contract through which the prospective buyer sets out the price and conditions under which he or she will buy the property. Upon acceptance by the seller, it forms a contract, which will form the basis for the final document to be prepared by a lawyer or notary.

Open Mortgage:
A mortgage which can be prepaid at any time, without penalty.

Operating Fund:
Cash and/or cash equivalents used to pay for the regular, recurring (i.e. weekly, monthly or annually) expenses of the condominium.

Option Agreement:
A document stipulating that, in exchange for a deposit, a specified individual is to be given first chance of buying a property within a specified period of time. If the option-holder does not buy within a specified period of time, he loses his deposit.

Overnight Rate:
The interest rate at which large banks borrow money, short term, among themselves.

Owner Occupied:
A property occupied by the owner and used as the primary place of residence.