What is option?
A contractual right, but not the obligation, to act for a stated period in exchange for a fee, such as a low-cost way to control a development site during feasibility, or a purchase option in a lease.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.