Glossary of Terms – O
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Offer to purchase:
The document that sets forth all the terms and conditions under which a purchaser offers to purchase property. This offer, when accepted by the seller, becomes a binding agreement of purchase and sale once all conditions have been removed.
Operating budget:
An estimate of costs to operate a building or condominium complex and corresponding revenues needed to balance them, usually for a 12- month period. Different from a capital budget.
Operating costs:
Those expenses required to operate an investment property, generally excluding mortgage payments.
Option agreement:
A contract, with consideration, given to a purchaser of a property, giving him or her the right to purchase at a future date. If he chooses not to purchase, he forfeits his deposit to the seller.
