Option Contracts

An Option Contract is a way for a buyer to "reserve" a property for a set time without being forced to buy it. It’s a written agreement that gives someone the right to buy or rent a property within a certain time period. The property owner, called the optionor, promises to keep the offer open. The person who may buy or rent the property is called the optionee. During the agreed time, only the optionee can decide whether to buy or lease the property at the price and terms already set. The owner cannot sell or rent the property to anyone else during that period. Because an option contract deals with real estate, it must be in writing and signed to be legally valid.