Document background
The Option Agreement (Real Estate) is a crucial document in Indian property transactions, particularly useful in complex real estate acquisitions where buyers need time to conduct due diligence or secure financing before committing to a purchase. This agreement, governed by Indian law including the Transfer of Property Act and state-specific regulations, provides the Option Holder with exclusive rights to purchase property while protecting the Option Grantor's interests through structured terms and consideration. It's commonly used in commercial property development, land banking, and strategic property acquisitions where parties need to lock in purchase rights while managing risks and completing preliminary requirements. The agreement typically includes comprehensive details about the property, price mechanisms, timeframes, and conditions for exercise of the option.
