What is a key feature of option contracts in real estate?

A key feature of option contracts in real estate is that they are unilateral in nature. In a unilateral contract, one party makes a promise in exchange for an act by the other party. In the case of an option contract, the property owner (the optionor) grants the potential buyer (the optionee) the exclusive right to purchase the property at a predetermined price within a specified time frame. This means that only the optionor is bound to the agreement, while the optionee has the choice to either proceed with the purchase or let the option lapse, thus making it distinct from bilateral contracts where both parties are obligated to fulfill specific duties.

The unilateral aspect allows the optionee to consider the opportunity without the requirement of immediate action, making it a strategic tool in real estate transactions, often used to secure a property while the buyer conducts due diligence or secures financing.