3.16 Definitions

• Library: Real Estate Practice Deskbook (2019 Ed.)

A. (§3.16) Definitions

American Jurisprudence (Second) defines an option to purchase real estate as "a contract by which an owner of real property agrees with another person that the latter has the privilege of buying the property at a specified price within a specified time"; no obligation to purchase is imposed on the person to whom the option is given. 77 Am. Jur. 2d Vendor and Purchaser § 26 (2019).

The option does not give the optionee any ownership or property right but merely the right to acquire an interest in the property. It is a right in personam rather than in rem. Generally, when the option is exercised, a sale contract is effected, changing the right to acquire an interest in the property to...