New Launch - India Real Estate Report 2026.

What is an Option-to-Purchase Agreement?

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

Key Terms

  • Agreed purchase price locked during option period
  • Option period duration specified in contract
  • Option fee paid by buyer non-refundable
  • Seller cannot sell to others during option

Common Uses

  • Land buyers securing time for financing
  • Tenants securing purchase right in lease
  • Developers controlling land before building
  • Investors locking prices before market changes

Option-to-purchase agreements give buyers exclusive right to purchase property at predetermined price within specified time paying option fee while seller cannot sell to others.

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