What does an option to purchase provide?

An option to purchase is a legal agreement that provides a potential buyer with the exclusive right to buy a property at a set price within a defined period. This arrangement is beneficial because it allows the buyer to secure the right to acquire the property without any obligation to finalize the purchase until they choose to do so within the specified timeframe. This flexibility is particularly advantageous in real estate transactions, offering the buyer a chance to consider their options or secure financing while having the assurance that the property will be available for purchase at the agreed-upon price during the option period.

In contrast, a mandatory purchase agreement would require the buyer to complete the transaction, which is not the case with an option to purchase. Similarly, the option does not pertain to property appraisal methods or financing options; those serve different purposes within real estate transactions.