"An option contract gives one party the right, but not the obligation, to buy or sell an asset at a specific price within a particular timeframe."
"In exchange for this right, the buyer pays a non-refundable option fee, ensuring the property is taken off the market during the option period."
An option contract in real estate gives buyers the exclusive right to purchase a property at a specified price, without the obligation to buy. This differs from standard purchase agreements where both parties are bound to transact. Buyers must pay a non-refundable option fee to secure this right, and sellers cannot sell to others during the option period. Key elements include defining the optionor (seller) and optionee (buyer), the non-refundable fee, the purchase price, and the option period for making the decision to buy.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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