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Lease Definitions & Terms

O

Obsolescence

Lessening of value due to being out of date (obsolete) as a result of changes in design and use; and element of depreciation.


Offer to lease

An agreement that binds the lessor to continuing negotiations in good faith once a qualified tenant has been found, until all negotiating points have been covered. In effect, it takes the space off the market during the negotiating period.


Open listing

A listing contract under which the broker's commission is contingent upon the broker producing a buyer before the property is sold by the owner or another broker.


Option

A contractual agreement giving one party a privilege of demanding, within a specified time, the carrying out of a transaction upon stipulated terms.