What is required for a buyer in an option contract?

In an option contract, the buyer has the right, but not the obligation, to purchase a property at a specified price within a designated time frame. This flexibility is what distinguishes an option contract from other types of agreements. The buyer pays for the option to purchase, which often includes an option fee or premium, granting them the exclusive right to buy the property if they choose to do so.

This structure allows the buyer to assess the property and make a decision without pressure to proceed with the purchase, safeguarding them against potential market fluctuations or other changes in circumstances. The absence of a requirement to buy means that the buyer can walk away without any further obligation if they decide not to exercise their option. This flexibility is a key characteristic of option contracts, distinguishing them from traditional purchase agreements, where a buyer typically commits to the transaction once signed.