What defines an option in real estate transactions?

An option in real estate transactions is specifically characterized as a unilateral contract. This type of contract involves one party granting another the right to purchase or lease a property within a specified time frame, without the obligation for the other party to commit. Essentially, the seller (optionor) gives the buyer (optionee) the right to decide whether to complete the transaction, making it unilateral because only one party is obligated to perform under the agreement.

In this context, the optionee can choose to exercise their right, depending on their interest in the property, while the optionor is bound to adhere to the terms agreed upon if the option is exercised. This flexibility distinguishes it from bilateral agreements, which involve mutual commitments from both parties.

The other options touch on aspects related to contracts generally but do not capture the essence of an option as distinctly as the definition of a unilateral contract does. An option does not necessarily bind both parties to a sale, nor does it require a deposit to be valid, although an option might include a consideration or fee to the optionor. Hence, the characterization of an option as a unilateral contract is the definitive feature that distinguishes it in real estate transactions.