Highlight In Legal Colorado Option To Purchase Forms For Free

What Is An Option To Purchase? An option to purchase agreement gives a home buyer the exclusive right to purchase a property within a specified time period and for a fixed or sometimes variable price. This, in turn, prevents sellers from providing other parties with offers or selling to them within this time period.

In the residential context, an option to purchase is usually a part of a rent-to-own agreement, also called a lease-option. This involves a tenant entering into a standard lease or rental agreement, in addition to acquiring the option to purchase the rental property in the future.

The option itself usually comes with a specific purchase price and is valid for a set time, usually 30 to 90 days. It's worth noting, with an option contract, the buyer is not required to purchase the property, while the seller is required to sell to the buyer within the contract's terms.

An option or payment-option ARM is an adjustable rate mortgage with several possible payment choices. Some of the payment choices do not cover the full amount needed to pay down the loan. The payment ?options? usually include: Paying an amount that covers both your principal and interest.

An option to buy contract is an agreement between two parties where an investor or tenant pays a fee in exchange for the rights to purchase property at some point in the future. You can have a straight option to buy a contract, which is a unilateral contract that only binds the seller to its terms.

Defining an option contract in real estate. In the simplest terms, a real-estate option contract is a uniquely designed agreement that's strictly between the seller and the buyer. In this agreement, a seller offers an option to the buyer to purchase property at a fixed price within a limited time frame.