An Option Contract Real Estate (OCRE) is an agreement between a seller and buyer that gives the buyer the right, but not the obligation, to purchase a property. The seller of the property holds all title rights until the buyer exercises the option by paying the agreed-upon option fee. OCREs are often used as part of a real estate transaction in which financing, inspections, repairs and other activities are completed before the final sale. OCREs can also be used to control pricing of a sale, provide for marketing assistance or simply hold an investment until the desired market conditions become more favorable.
Want to find out more about procurement?
Access more blogs, articles and FAQ's relating to procurement