Concepts Definitions
Option: A contract granting a right, without the obligation, to lease or purchase a property under specified terms during a specified period. It must be in writing to be valid.
Optionor: The party who gives or sells the option (typically the seller). The optionor is obligated to keep the offer open during the option period.
Optionee: The party who receives or acquires the option (typically the buyer).
Consideration: Something of value exchanged by each party to induce them to enter into a contract; it must be legally sufficient. For an option, this can be a small monetary payment.
Legal Interest in Property: An option typically does not grant the optionee possessory rights or legal title to the property during the option period; it provides a contractual right to acquire such an interest in the future if the option is exercised.
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