What is an option to purchase real estate?

Answer by  patti (29325)

An option is a choice. An option to buy real estate is like an option to buy anything else: do you want to buy it or not? If so, proceed with the sale. If not, decline and let someone else buy it.

Answer by  patti (29325)

An "option to purchase" means that the individual is being given an opportunity to buy the property (land/house/commercial) by the owner. An option might be extended for various reasons, including first right of refusal on a lease agreement. A tenant might be given "first right of refusal" on an "option to purchase" if the landlord decides to sell the property.

Answer by  Dean (4035)

There are different options. One is "right of first refusal:" let's say you rent a house. The landlord agrees that if he/she decides to sell, you will give the first opportunity to make an offer. Other agreements might be included in the rental contract: the renter has the option to purchase the property in a specificed amount of time.

Answer by  toottoot (192)

There are real estate properties with the "option to purchase," meaning you often have to rent it first, and after a certain number of months or years, the owner will give you the opportunity to purchase the property from him. You would need to be in good standing with the landlord / owner in order to do so.