New Launch - India Real Estate Report 2026.

What is a Purchase Option Agreement?

Purchase Option Agreement A purchase option agreement is contract giving buyer exclusive right to purchase property at predetermined price within specified time period paying option fee for this right while seller cannot sell to others during option period.

Key Terms

  • Agreed purchase price locked in
  • Option period duration specified
  • Option fee paid by buyer
  • Seller restricted from selling

Uses

  • Land buyers securing financing time
  • Tenants securing purchase rights
  • Developers controlling land before building
  • Investors locking prices before changes

Purchase option agreements give buyers exclusive rights to purchase property at predetermined prices within specified times paying option fees while sellers cannot sell to others.

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