option contract real estate
have you ever heard the term option contract in real estate? by definition, an option contract in real estate is when a buyer and a seller agree on set price to either buy or sell a property at a later date for a monetary cost to the buyer. an option contract covers a set time period negotiated by the two parties. the duration of the option period is also negotiated between the two parties. the option contract real estate definition also references a price at which the potential buyer can buy the property during the duration of the contract. an option contract essentially allows a buyer to put a property “on hold” for a certain period of time without fear of losing it.