Option to Purchase

A contract giving one party the right but not the obligation to buy the property of another party within a certain time, for a stated amount, and subject to specific conditions. Example: Marco needs two adjacent parcels of land for a project he wishes to build. He can obtain an option to purchase one of them; if he is able to buy the other, he can use his option to buy the first one. If he cannot buy the other, he can let the option expire.