HOMEWORK1_Baluyot - Baluyot Paolo Joshua 11312432 BUSLAW1...

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Baluyot, Paolo Joshua January 15, 2016 11312432 BUSLAW1 Option Contract – An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions. Option Money – an option fee/money is money paid by a Buyer to a Seller for the option to terminate a real estate contract. Option fee funds should not be confused with earnest money. The use of option fees is most common in the residential resale market. Option Period – Option periods are a wonderful security for buyers because one can terminate for any reason within the option period without risking earnest money. If one chooses to terminate a contract, the seller has the right to keep the amount paid for the option period. Earnest Money – This is the money given to the seller by the prospective buyer to
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