An Option to Purchase Real Property (also known as an Option Contract or Real Estate Option) is a legal agreement that gives the buyer the right, but not the obligation, to purchase a specific piece of real estate. The buyer pays a fee, known as an option fee, to the seller in exchange for the right to purchase the property at a predetermined price for a specified period of time. This type of agreement is often used in real estate transactions where the buyer is interested in a property but is not yet ready to commit to the purchase. There are two main types of Options to Purchase Real Property: 1. Call Option: This type of option gives the buyer the right to purchase the property at an agreed-upon price during the agreed-upon period of time. 2. Put Option: This type of option gives the seller the right to sell the property at an agreed-upon price during the agreed-upon period of time.
An Option to Purchase Real Property (also known as an Option Contract or Real Estate Option) is a legal agreement that gives the buyer the right, but not the obligation, to purchase a specific piece of real estate. The buyer pays a fee, known as an option fee, to the seller in exchange for the right to purchase the property at a predetermined price for a specified period of time. This type of agreement is often used in real estate transactions where the buyer is interested in a property but is not yet ready to commit to the purchase. There are two main types of Options to Purchase Real Property: 1. Call Option: This type of option gives the buyer the right to purchase the property at an agreed-upon price during the agreed-upon period of time. 2. Put Option: This type of option gives the seller the right to sell the property at an agreed-upon price during the agreed-upon period of time.
