Option to Purchase

An option to purchase grants the holder the right, but not the obligation, to buy property at a specified price within a defined timeframe.


Option TermsElement
Option feePayment for the right
Strike pricePredetermined purchase amount
Exercise periodPredetermined purchase amount
ConditionsPredetermined purchase amount
Strategic UsesApplication
Development sitesSecure land for future project
Market timingLock price during evaluation
Financing arrangementTime to secure funding
Regulatory approvalsContingent on permits

Related Terms

First Right of RefusalRight of First Refusal (ROFR)Call OptionPre-Emption RightFirst Right of RefusalPurchase Agreement

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