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In an option contract, the seller is the optionor and the buyer is the optionee. The owner of the property gives the buyer an option to purchase, making the seller the optionor and the buyer the optionee. The seller is obligated to sell, but the buyer has the option to buy. When the buyer exercises their option, it becomes a bilateral contract. The option can be assigned to another party unless the contract prohibits it. In a lease option, the lessee agrees to lease the property with an option to buy. The option typically involves some form of consideration, such as upfront money or added rent to be applied towards the purchase later on. The lessee is the optionee and the lessor is the optionor in this scenario.
