Option to Purchase Package - Washington 2025

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An option to purchase real estate is a contract by which an owner of real estate agrees with another person that the latter shall have the privilege of buying the property at a specified price within a specified time. However, no obligation to purchase is imposed upon the person to whom the option is given.
Weekly Options: Expire every Friday (except holidays). Monthly Options: Expire on the third Friday of the month (most common). LEAPS (Long-Term Equity Anticipation Securities): Can last up to three years.
Typically lasting between 5 to 10 days, the option periods length can vary based on what is negotiated between the buyer and seller at the time of contract signing. To secure this privilege, the buyer pays the seller a non-refundable fee, known as the option fee.
An option-to-purchase contract must conspicuously state the duration of the option period. There is no correct or preferred unit of time and option periods can range from months to years. Typically, however, in the residential context, option periods range from one-to-five years.
An OTP, or Option to Purchase, is a valid legal agreement signed between the prospective buyer and the seller outlining the terms and conditions for a property sale. Under the OTP agreement, the prospective buyer gets the option to purchase a property at an agreed-upon, pre-approved price.
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How Do You Profit From Real Estate Options? You can profit from real estate options by exercising the option to purchase a property at a lower price than its current market value, or by selling the option contract itself to another buyer for a profit.
Most OTPs do not allow the property seller to withdraw from the transaction once the OTP has been exercised without consequences. In contrast, the buyer typically has the option to back out, although this usually results in forfeiture of any option fee or deposit paid.
The OTP is valid for 21 calendar days from the date the OTP is granted. The Option Period is 21 calendar days (including Saturdays, Sundays, and Public Holidays). It is given to you by the flat sellers, from the date of granting the OTP (refer to Step 2).

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