What is an option to purchase?

An option to purchase is a type of contract in residential real estate law in New York that gives one party the right to buy a property from another party. This type of agreement is beneficial for both parties involved as it protects the seller from people who are wanting to use it to speculate on the property and it also gives the buyer an opportunity to secure the property before it is put on the market. The option to purchase is a binding contract that requires the buyer to pay consideration to the seller in exchange for the right to purchase the property at an agreed-upon price. This consideration can be a one-time payment or a series of continuous payments. This agreement also contains other details such as how much time the buyer has to exercise the option and how much of the purchase price must be paid at the time of purchase. The option to purchase can help a buyer secure a property that they might not otherwise have the opportunity to purchase. It can also help sellers to lock in a sale price, even if the market changes. If both parties are comfortable with the terms of the option to purchase agreement, it can be a great way to move forward with a real estate transaction.

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What is an option to purchase?

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