Option Agreement – Once a potential buyer is interested in a property, they naturally want to prevent the seller from selling the property elsewhere. When the situation arises, there is an option for both to create an option contract that obligates one party to buy or sell the property in an agreed upon time period. Once the contract expires, the seller can find another buyer. Until then, the property remains reserved.
Option contract at a glance: Contractual reservation of a property
- An option contract is created when someone is interested in a property and wants to prevent someone else from buying it. In the agreed time frame, the interested party must decide to buy the property or not.
Back to the wiki: Real Estate