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Peter Jones, a chartered surveyor, author, and property investor, discusses option agreements in property investment. An option is a legal contract that allows a buyer to control a property and secure the right to purchase it at a predetermined price in the future. While the concept of options is not new—having been used historically in areas like the stock market and by Silk Road traders—it is relatively recent in the context of residential property. Importantly, an option provides the buyer with the right, but not the obligation, to purchase the property, whereas the vendor must sell if the buyer chooses to exercise the option.
