Oral Agreement 
Arrangements that are not memorialized in writing and are not usually legally binding. 

Oral Contract 
Contract not in writing. Some oral contracts are enforceable but those applicable to the sale of real estate are unenforceable. 

Orange Peel 
Wallboard finish that has the texture of an orange peel. Also, a painted surface having this texture. 

Orange Shellac 
A waterproofing agent. Shellac that has not been bleached to a colorless state. 

Orbital Sander 
A power sander used in finish work where the sandpaper is oscillated to allow even sanding. 

Order 
1. A purchase of materials or the act of making the purchase (i.e. ordering a shipment of lumber). 
2. A level of classification. 
3. Organization. Neatness. 

Ordinance 
Law enacted by local authorities to govern the activities of people or things, such as land usage. 

Ordinary and Necessary Business Expenses 
Tax term describing current and necessary business expenses, which are allowed as deductions. Ordinary and necessary business expenses do not include long-term capital losses. 

Ordinary Annuity 
A series of equal payments with each payment occurring at the end of each equally spaced period. 

Ordinary Income 
Defined by the Internal Revenue Code to include salaries, fees, commissions, interest, dividends, and many other items. Taxed at regular tax rates, contrasted with long-term capital gains, which receive more favorable tax treatments. 

Ordinary Interest
Interest based on a 360-day year instead of a 365-day year. The former is referred to as simple interest and the latter is termed exact interest. The difference between the two types of interest can be significant when a substantial investment is involved. 

Ordinary Loss 
For income tax purposes, a loss that is deductible against ordinary income. Usually more beneficial to a taxpayer than a capital loss, which has limitations on deductibility. 

Organic 
Consisting of or containing carbon compounds. 

Oriel Window
A projecting window located above the first floor that is supported by brackets. 

Orientation 
Position of a structure on a site, relative to sunlight angles and prevailing winds. Locating a structure after considering such factors as the homeowner's desired privacy, noise, etc. Alternately, familiarizing a newly hired employee with the required knowledge. 

Oriented Strand Board 
A manufactured wood product consisting of wood strands and resin bonded with heat. Used as sub-flooring and sheathing. 

Orifice 
An opening, usually one that can be constricted or closed by a control device. 

Original Equity 
The amount of cash initially invested by the underlying real estate owner. 

Original Grade 
The grade at a construction site prior to any excavation work. 

Original Principal Balance
Amount of principal owed on a loan before any payments are made. 

Origination Fee 
Fee charged by most lenders, which covers the direct costs of arranging the loan, and also referred to as points, which is one per cent of the total loan amount. 

Origination Process 
The process by which a loan is funded, including the due diligence process financial structure and lender committee approvals.

O-ring 
A round gasket. 

Ornate 
Heavily decorated or trimmed. 

Orthogonal 
Having right angles, such as a square. 

Orthographic Drawing 
A type of drawing, used in elevations, where each side is shown projected at a right angle from the front. 

Oscillate 
To move back and forth or vary from one extreme to another. 

Osha
Occupational Safety and Health Administration

Ostensible 
Alleged to be real or genuine. What appears to be. 

Other People's Money (OPM)
The use of borrowed funds by people or businesses to increase the return on an investment. The term implies that debt can be used to maximize investment profits or minimize the risk of personal loss. 

Ounce 
1. A unit of weight equal to 1/16 of a pound.
2. A unit of volume equal to 1/32 of a quart. 

Outbuilding 
Any structure located on a lot in addition to the house or main building. Outbuildings can be barns, shops, sheds, etc. 

Outdoor Living
Style of life emphasizing outdoor activities, amenities and recreation. 

Outlawed 
Something that is illegal.

Outlet 
1. An electrical receptacle. 
2. The discharge end of a drainage or other fluid system.

Outlet Analyzer 
A device used to test an electrical receptacle. 

Outlet Box 
A housing for an electrical receptacle, switch, or other system. 

Outlet Box Cover 
A cover for an outlet box with cutout for switches or receptacles. 

Outlet Sewer 
Pipe section, in a septic system, which runs between a septic tank and the drainage field. 

Out of Plumb
see Out of True. 

Out of Square
Not square. Not having 90-degree angles. 

Out of True 
Being in a state of not perfectly perpendicular. 

Outrigger 
1. Structural support for a roof overhang.
2. Extensions on a piece of heavy equipment used to enhance stability. 

Outside Caliper 
A caliper that curves inward for measuring outside dimensions. 

Outside Corner Tool 
A drywall knife with a bent blade, used to apply joint compound to both sides of an outside corner. 

Outside Diameter 
The diameter of a circle or sphere measured from the outside edge.

Outstanding Balance 
The amount still unpaid and owed on a debt, loan or other financing agreement.