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Peter Jones, a chartered surveyor and property investor, discusses option agreements in property. He explains that an option is a legal contract that allows a buyer to control a property and grants the right to purchase it at a pre-agreed price in the future, without the obligation to do so. Although options have a long history in finance—dating back to medieval silk traders—they are relatively new in residential property investing. The vendor who grants the option must sell the property if the buyer decides to exercise the option. This flexibility makes option agreements a unique tool in real estate transactions.
