obsolescence
A loss in the utility of an asset due to the development of improved or superior equipment, but not due to physical deterioration.

Occupancy
Occupancy rates represent rooms nights occupied expressed as a percentage of room nights available, during any given period. For other properties (other than a hotel), it is the measure of the percentage of floor space occupied by tenants as compared to the total lettable area of the building.

Occupancy Certificate (OC)
A document issued by the local municipal authority building proposal department that provides no objection to occupy the building under reference for its specified use. The OC is issued only once the building has been completed in all respects and can be occupied. A corporate can carry out its commercial activity only once the premises/building has received its OC.

occupancy cost
Cost faced by a tenant associated with the occupancy of premises. This includes charges such as rent, taxes, rates and insurance.

occupied stock
Total amount of stock which is leased or owner occupied.

offer
An expression of willingness to purchase or sell a property at a specified price; presenting for acceptance a price for a property parcel; the bid price in a real estate or security transaction.

offer and acceptance
These two requirements of a contract signifying mutual consent combined with valuable consideration are the major elements of a binding contract.

offeree
An entity that receives an offer.

offeror
An entity that makes an offer.

office
A room, set of rooms, or building where the business such as paper work, administration, clerical services, and consultation with clients and associates of a commercial or industrial organization or of a professional person is conducted.

off-site
Improvements or activities taking place away from the site or located away from the site.

off-site improvements
Development of land adjacent to the property to make it habitable such as side-walks, paved access road, sewers, etc.

on-site improvements
Directly enhancing the physical nature of the property such as renovating a building, installing a new driveway and parking lot and gardening.

open book
Where a contractor is required to provide and verify to the client the actual cost of the works carried out by others (normally associated with construction management).

open house
A term referring to a house that is left open for prospective buyers to see or inspect. This normally does not involve a formal appointment as the time and days when the house remains open is specified or fixed.

open listing
An agreement permitting a real estate agent to sell the property while also allowing the homeowner or other agents to attempt to make the sale.

open market value
The amount that a seller may expect to obtain for property, services, or securities in the open market.

open-end mortgage
A mortgage or trust deed in which the amount borrowable can be increased by the mortgagor, that is, the mortgagee may secure additional money from the mortgagee (lender) through an agreement which typically stipulates a maximum amount that can be borrowed.

operable wall
An openable wall often used between meeting rooms that can be moved to one side to create a larger space.

operating expenses
Expenses incurred in managing an investment property, including repairs and maintenance, legal and management fees.

option
The right to buy or sell an item at a specified price within a given period of time. The right, if not exercised after a specified time, expires. For example, a lease of a property with the option to buy.

oral contract
The term refers to a verbal contract made between parties where there is partial or no written agreement. These types of contracts have a very weak legal standing and are dependent on witnesses to the said contract.

ordinance
A statute enacted by a city or town especially enactments of the legislative body of a municipal corporation or a county.

ordinary asset
Property which includes inventory for sale, or property used in connection with trade, business, or source of income.

ordinary repairs
Minor day-to-day repair and maintenance of a property to prevent wear and tear.

outgoings
Costs incurred by the owner of an interest in property, usually calculated on a yearly basis, eg., management, repairs, rates, insurance and rent payable to the holder of a superior interest, as appropriate to his contractual or other liabilities. It is prudent to make annual provision for future items involving expenditure at intervals of more than one year.

outline zoning plan( ) (HKG)
Statutory plans prepared under the Town Planning Ordinance which depicts the land use zoning.

overage income
Rental based on a percentage of sales or profit that is over and above the constant rental amount.

overbook
To accept reservations in excess of the number that can be accommodated.

overhead
Fixed or indirect expenses of a business or property. Overhead includes items such as salaries, office rent, and other such administrative and marketing costs.

owner
An entity possessing ownership rights to a property.

owner occupied
A property that is occupied by an entity that possesses ownership rights to the said property

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