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In an option contract, the seller is referred to as the optionor and the buyer is the optionee. The owner of the property grants the buyer the option to purchase, making the seller the optionor and the buyer the optionee. This creates a unilateral contract where the seller is obligated to sell, but the buyer has the option to buy. When the buyer exercises the option, it becomes a bilateral contract like any other purchase agreement. 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, typically for some form of consideration such as upfront money or additional rent applied towards the purchase.
