Option Agreements

Granting the Option:
The landowner (grantor) agrees to give the other party (option holder) the option to purchase the property. This option is typically subject to certain conditions being met.

Conditions and Consideration:
The agreement outlines the conditions under which the option can be exercised. The option holder may pay consideration (often a fee) for this right.

Timeframe:
The option agreement specifies the duration during which the option can be exercised. It could be months or years.
Exercise of Option: If the option holder decides to proceed, they notify the grantor, and the sale or purchase process begins.

Land Development:
Developers use option agreements to secure land for future development. They can assess market conditions and obtain planning permissions before committing fully.

Property Investment:
Investors may use options to secure properties at today’s prices for potential future gains.

Risk Mitigation:
Landowners can mitigate risk by granting options while retaining ownership until the option is exercised.