In an option agreement, who is bound by the option?

In an option agreement, the optionor holds the obligation and is bound to fulfill the terms of the agreement. The optionor is the property owner or seller who grants the option to another party, known as the optionee, giving them the right, but not the obligation, to purchase the property at a predetermined price within a specified time frame. This structure means that while the optionee can choose whether or not to exercise the option, the optionor must comply with the terms if the optionee decides to proceed with the purchase.

The role of the optionor is critical in this scenario, as they are the party that must honor the agreement if the option is exercised. This contractual commitment is essential for the optionee, as it ensures that they have the right to buy the property at the agreed terms without the optionor being able to back out if they decide to exercise the option during the option period.

In contrast, the optionee does not have a binding obligation to purchase the property; instead, they have a choice that does not require them to act. The broker and salesperson do not have specific binding roles related to the terms of the option agreement itself, as they are typically facilitators of the transaction rather than parties bound by the terms of the