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Peter Jones, a chartered surveyor and property investor, explains option agreements in property. An option is a legal contract granting the right to control a property and buy it in the future at a predetermined price, though there is no obligation to do so. This concept isn't new; options have been used in various markets, including stock trading and historical silk trading. In residential property investing, this approach allows investors flexibility, as they can decide whether to exercise the option without being compelled to buy. However, the seller is obligated to sell the property if the option is exercised.
