| Word: | Definition: |
| OBLIGATION | Legal reservation of funds based on known requirements (a contract, for example), or an a realistic estimate of costs.
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| OBLIGOR | One who places himself under a legal obligation to an obligee.
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| OBSOLESCENCE | As applied to real estate it is the loss of value due to structural, economic, or social changes becoming outmoded.
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| OFFER | A promise by one party to act in a certain manner provided the other party will act in the manner requested. The offeror is the one who makes the offer to the offeree.
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| OFFSET STATEMENT | A statement by the owner of property or owner of a lien against property, setting forth the present status of liens against said property. |
| OPEN-END MORTGAGE | A mortgage containing a clause that permits the mortgagor to borrow money after the loan has been reduced without rewriting the mortgage. |
| OPTION | A privilege, acquired for a consideration, of demanding within a specified time the carrying out of a transaction upon stipulated terms. The optionor grants an option to an optionee. |
| ORDER OF POSSESSION | Court order in a condemnation which allows the Government to enter and use lands.
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| OUTGRANT | Government term for the interest or right granted to one to use Government real property by a lease, easement, license, or permit. |
| OUTLEASING | The leasing of Army-controlled real property which is temporarily not required for mission purposes.
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| OUTSTANDING RIGHTS | Encumbrances, obligations, or liens on property. The Government may take such property subject to the outstanding rights or may eliminate them.
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| OVER-IMPROVEMENT | An improvement to land that is more extensive or costly than needed. As an example, the erection of a thirty-story office building where fifteen would have been adequate for the present and foreseeable future needs of the business community. |
| OWNER IN EQUITY | owner is responsible for repairing or replacing improvements to the property that are damaged (i.e., loss by fire, damages due to flood, etc.). |