option

An offer to buy/sell/let/rent property that goes with an undertaking by the offeror not to revoke the offer for a certain period, is known as an option.

A buyer who is interested in a property, but cannot immediately make an offer to purchase, could ask the seller for an 'option'. This is actually an option to buy, or an irrevocable offer to sell the property. The option must state a purchase price and the option period. The buyer can still decide to buy or not to buy.

Because such an option would effectively take the property out of the market for the option period, the seller would be within his/her right to demand an amount of money to be paid as option consideration before granting the option. Such option consideration would normally go towards payment of the purchase price when the buyer excercises the option, but not be refunded if the option period lapses.

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Terms that closely resemble "option":