Option to Purchase Real Estate is a contract between two parties, in which one party (Option or) is granting the other party (Optioned) the right to buy a property at a predetermined price within a specific time period. The Option or holds all rights to the property until the Optioned exercises their option to purchase. This agreement is typically used when the Optioned is interested in buying the property but needs more time to secure financing or complete other arrangements. Different types of Option to Purchase Real Estate include a call option, put option, and lease option. A call option grants the Optioned the right to buy a property at a predetermined price, while a put option grants the Optioned the right to sell the property at a predetermined price. A lease option is a contract between a tenant and a landlord, in which the tenant agrees to pay an option fee in exchange for the right to purchase the property at a predetermined price in the future.