Yes, it is where you have an agreement to purchase the property at a fixed time and a fixed price.
Example:
You give me an Option to purchase your property in 1 year for $50000. During that time I may pay you $100. a month for the option. I should have the right to assign my option if I so desire....this is where I get paid.
I'm also going to record the option at the county courthouse to protect my interest (This clouds the Title).....and in most cases prevents the you, the seller from selling to someone else as I have the first option to buy.
Hope this helps,
Clif [ Edited by pbodys on Date 08/09/2003 ]
Yes, it is where you have an agreement to purchase the property at a fixed time and a fixed price.
Example:
You give me an Option to purchase your property in 1 year for $50000. During that time I may pay you $100. a month for the option. I should have the right to assign my option if I so desire....this is where I get paid.
I'm also going to record the option at the county courthouse to protect my interest (This clouds the Title).....and in most cases prevents the you, the seller from selling to someone else as I have the first option to buy.
Hope this helps,
Clif [ Edited by pbodys on Date 08/09/2003 ]