Option
An option is an agreement conveying the right (but not the obligation) to purchase property or enter a transaction in the future on agreed terms. In real estate, it functions as a unilateral right: the option holder can choose whether to exercise within the allowed period, while the property owner is bound if the option is properly exercised.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Site acquisition; diligence; entitlements
- Property types
- Land; redevelopment; assemblage situations
In practice
When multiple parcels are involved, options can be sequenced to reduce early capital at risk while still enabling a future assemblage.
Read more in the Knowledge Base
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Related terms
Land and Site Acquisition
General information, not legal, tax or financial advice.