Glossary / Abbreviations

To help you understand the some of the terminology and 'jargon' that may be used when purchasing a property, we have complied this listing.

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occupancy rate - The relationship or ratio between the income received from the rented units in a property and the income that would be received if all the units were occupied.

Off the Plan - To purchase a property before it's completion by only having seen the floor plans.

Offer - The intent by an entity to form a contract, with any conditions and stipulations they may require, with another party.

Offset Account - An account linked to a mortgage account so that the interest earned is applied to reduce the interest on the mortgage.

ofp - open fire place

Old System Title - Or also called Common Law Title. This is a series of title documents called a 'chain of title'. The overall title is sound only if the every document in the chain is sound. The legal investigations are complicated and expensive. An old system title may be converted to a Torrens Title and is automatically converted following sale as this is now an unused system of property title.

ono - or nearest offer

operating expense ratio - The ratio of total operating expenses to effective gross income.

operating expenses - The periodic expenditures necessary to maintain the real property and continued production of the effective gross income, assuming prudent and competent management.

ophws - off peak hot water service

orig - original

osp - off street parking

overall capitalization rate - An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy or an annual average of several years' income expectancies and total property price or value; used to convert net operating income into an indication of overall property value.

oy own - your own