What is an exercise of option?

An exercise of option is a legal contract between two parties that states one party has the option to buy or lease a property from the other party. In California, an exercise of option will typically involve one party offering to buy or lease a certain property from the other party, and the other party having the right to accept or reject the offer. The party with the right to accept or reject the offer is known as the optionee, while the party offering to buy or lease the property is known as the optionor. Once the offer is accepted by the optionee, the optionor is obligated to purchase or lease the property at the price stated in the exercise of option contract. The contract will specify the length of the option, when the option must be exercised by, and the amount of any deposits that must be made. Exercising an option is a major step in the process of transferring property from one person or entity to another. This type of legal contract can help protect the interests of both parties by setting the terms of the agreement and providing the optionee with legal recourse if the optionor does not fulfill their obligations.

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What is an exercise of option?

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