what is an option contract in real estate

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Unilateral contract

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  • What are the basics of a real estate option contract?

  • The basics of real estate option contracts. A real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property. Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else.

  • What is the difference between a contract and an option?

  • The option usually includes a predetermined purchase price and is valid for a specified term, such as six months to a year. However, the buyer does not have to buy the property, whereas the seller is obligated to sell to the buyer within the terms of the contract.

  • What is an option to buy a property?

  • Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else. The buyer pays for the option to make this real estate purchase. The option usually includes a predetermined purchase price and is valid for a specified term such as six months to a year.

  • What is the difference between lease option and purchase option?

  • A real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property. … A lease option allows the renter to purchase the property after a predetermined rental period, which the buyer pays to obtain.

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