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The video discusses the option to purchase agreement, referred to as a simple marketing agreement between the buyer and the motivated seller. This contract helps the buyer gain equitable interest in the property for marketing purposes. Key components of the agreement include identifying the motivated seller as the optionor and the buyer as the optionee, along with including the property's address and the signing date. The contract typically allows for a timeframe of 60 to 90 days from the signing date. The speaker emphasizes the importance of understanding the contract details and keeping a laminated copy for reference during site visits.