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How Put and Call Option Real Estate Agreements Work
Put and Call options are an effective way by which parties enter a contract to acquire or sell property with minimum upfront commitment. The arrangements offer a party the right, and not a distinct obligation, to purchase an asset or property. Put and Call option agreements have a diverse variety of uses in real estate, business assets, and as tools of succession planning.What is a Put and Call option?There are three components in a Put and Call option contract:i. Put option – The seller can rightfully compel a buyer to acquire the property.ii. Call option –The buyer can rightfully compel the seller to sell his/her property.iii. Put and Call option – Both parties have the right to coerce each other to sell or buy the property. Such options run consecutively. The call option precedes the put option.How do call and put options work?Option agreements have two principal components in put and call option real estate. The first one is the body of the option contract. It outlines the terms that regulate how the parties may exercise their specific options. The second component entails the sale contract being an annexure of the option agreement. 
The agreement will contain all the terms and details, ... more

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