Purchase Options and Lease Options

Option Contracts

An option gives the optionee (buyer) the right, but NOT the obligation, to buy the property at a specified price within a specified time. The optionor (seller) is bound to sell if the optionee exercises the option. The optionee pays consideration for the option (option money). Option money is typically non-refundable if the option is not exercised, but may be credited toward the purchase price if exercised.

Civil Code §1621