What is an option to purchase?

An option to purchase is a type of contract in which one party (the optionor) gives another party (the optionee) the right to purchase a property during a specific time period at a specified price. In Kansas, an option to purchase is an enforceable agreement, meaning that both parties are legally bound to its terms. The optionor grants the optionee the right to purchase the property at any time during the option period, as long as the option fee is paid and the optionee has met the agreed-upon conditions. The option fee is nonrefundable and will typically be used to defray the costs associated with the sale of the property. In many cases, the optionor will require the optionee to put down an earnest money deposit as part of the option agreement. An option to purchase can be beneficial to both parties. It allows the optionor to receive payment for the right to purchase the property before the optionee exercises his/her option to buy the property. The optionee enjoys the security of knowing that he/she can purchase the property at the specified price during the option period. It also allows the optionee the opportunity to secure financing and review the title of the property before completing the purchase.

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What is an option to purchase?

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