Who is obligated to perform in an option agreement?

In an option agreement, the seller of the property is obligated to perform. This type of contract provides the buyer with the right, but not the obligation, to purchase the property at a specified price within a certain timeframe. The seller, on the other hand, is required to adhere to the terms outlined in the agreement, meaning they must sell the property at the agreed-upon price if the buyer decides to exercise their option.

The nature of the option agreement creates a unilateral obligation for the seller, as they must be prepared to complete the sale if the buyer chooses to move forward. This arrangement allows the buyer to have flexibility and control over the decision to purchase without committing to it until they decide to exercise the option.

The other parties involved, such as the lender, do not have an obligation tied directly to the terms of the option agreement itself, as their role typically involves financing rather than the execution of the sale.