Option to Purchase Agreements

An Option to Purchase Agreement is a legal contract that gives a buyer the right, but not the obligation, to buy a property at a specified price within a set timeframe. The buyer usually pays an option fee for this privilege. If they decide to proceed with the purchase, the fee often contributes to the total price. If they choose not to buy, the seller keeps the fee. This agreement benefits buyers who may want time to evaluate the property before committing, while sellers gain an upfront fee for agreeing to this option.