Archives: Glossary Terms

A property that is being presented without the need for an appointment that is available for inspection by potential purchasers.

A nonexclusive authorization given to a licensee and which may be given to a number of licensees by a property owner, who retains the right to sell directly, to try to secure a purchaser without any liability to compensate anyone but the one who is the first to produce a ready, willing and able buyer who meets the terms of the listing or the one who gets the seller to accept an offer. Upon the sale of the property, the owner is under no obligation to notify anyone of the fact of the sale.

A right, given for a consideration, to purchase or lease a property, upon specified terms and within a specified time period, and placing no obligation on the party receiving the option to purchase the property.

A listing that give the listing broker the right (option) to purchase the listed property.

A contract giving one party the right but not the obligation to buy the property of another party within a certain time, for a stated amount, and subject to specific conditions. Example: Marco needs two adjacent parcels of land for a project he wishes to build. He can obtain an option to purchase one of them; if he is able to buy the other, he can use his option to buy the first one. If he cannot buy the other, he can let the option expire.

The one who receives an option who might be the potential purchaser of real property.

The one who gives the option who is usually the owner of the real property.

A rate that includes interest on the land and the building and provides for a recapture of the capital invested.

The person who owns property and might be listing it and since he or she has not sold the property, so would not yet be considered to be a “seller.”

See Seller financing.