What is an option to purchase?

An option to purchase is a legal agreement between two parties that gives one party the right to purchase certain property from the other party at a predetermined price at any time between the option expiration date and the option exercise date. In Florida, an option to purchase is generally considered an agreement between the seller and the buyer of real estate. An option to purchase grants the buyer the right, but not the obligation, to purchase the property at a set price for a specified period of time. The buyer pays the seller a non-refundable option fee for the right to purchase the property, which entitles the buyer to exclusive possession and use of the property for the option period. The buyer may choose to exercise the option to purchase the property at any time before the option expires, and the seller then must agree to sell the property to the buyer according to the terms of the option.

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