| A real estate purchase option is a document that | | | | depends on what you and the owner will agreed |
| gives someone the right to purchase a piece of | | | | upon. Most option contracts have a one or two year |
| property at a fixed price during the term that the | | | | term but it can be any amount of time that you |
| real estate purchase option is in effect. During the | | | | agree.3. How much are you willing to pay for the |
| option period, the owner can not sell the property to | | | | option? You must purchase the option from the |
| anyone else and must sell the property to the | | | | owner of the property. This money belongs to the |
| purchaser of the option if the purchaser desires the | | | | owner no matter if you decide to purchase the |
| property. The purchaser has the right, but not the | | | | property or let the option expire.To prevent the |
| obligation, to purchase the property. The purchaser | | | | owner from selling the property while the option is in |
| can let the option expire without purchasing the | | | | effect, you can record the real estate purchase |
| property. Your only lose, in this case, would be the | | | | option with the county courthouse. However, you |
| price you paid for the real estate purchase | | | | may want to consider the consequences of this |
| option.There are three things you must determine at | | | | action as some mortgage companies will call the loan |
| the time that the option is created for the property.1. | | | | due if they see a purchase option for the property |
| How much will you pay for the property if you | | | | as they consider it a sale. You should use your |
| decide to purchase it? It does not matter if the value | | | | judgment for this.Once you own a real estate |
| of the property goes up or down during the option | | | | purchase option, you control the property. Also, the |
| term, you will be able to purchase the property for | | | | real estate purchase option is also an asset that may |
| the price agreed upon in the option. If the value goes | | | | be sold, or assigned to another person if you wish. |
| up, you win, but if the value goes down, you should | | | | Look for the next article to see what you can do |
| let the option expire and just purchase it for the | | | | with your property now that you have secured the |
| going value at the time. Your maximum loss is the | | | | purchase option.Greg Walding owns W & P Property |
| amount you paid the owner for the real estate | | | | Management and has a gained alot of knowledge in |
| purchase option.2. How long is the term of the | | | | the area of securing property with very little money |
| option? The term is a fixed amount of time and | | | | down. |