What type of contract allows a buyer to pay a premium to a seller for exclusive rights to purchase a property?

The correct answer is the option contract. An option contract is a specialized agreement in real estate that gives the buyer the exclusive right to purchase a property within a specified time frame, in exchange for a premium or consideration paid to the seller. This type of contract effectively locks in the buyer's opportunity to purchase, allowing them time to evaluate the property or secure financing, without the risk of the seller selling to someone else during that period.

In this arrangement, the seller is typically compensated for granting this exclusivity through the premium paid, which is usually a non-refundable fee. This offers the buyer control and the potential for future purchase, providing a strategic advantage in competitive markets.

Other types of contracts, like a standard purchase agreement, represent a definitive commitment to buy or sell a property but do not necessarily include a premium for exclusive rights. A joint venture agreement involves partnership structures for investment purposes rather than specific rights to purchase. An exclusive listing agreement pertains to the arrangement between a seller and a real estate broker to exclusively represent the property, without giving the buyer any purchase rights. Understanding these distinctions clarifies why an option contract is the correct choice in this scenario.