Contracts

What is an 'option contract' in Nevada real estate?

AA standard purchase contract with multiple offer options listed
BA contract giving the option holder the exclusive right to purchase property at a fixed price within a specified time period, for which they pay option consideration to keep the option open✓ Correct
CA contract option allowing the seller to choose between multiple buyers
DA Nevada court-approved extension of a purchase contract

Explanation

An option contract gives the buyer (optionee) the right — but not the obligation — to purchase property at a specified price within a set time period. The seller (optionor) receives option consideration (payment) and is bound during the option period; the buyer is not obligated to exercise the option. If the option is exercised, it becomes a binding purchase contract. Options are used in commercial development, ground leases, and assemblage strategies in Nevada.

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