What type of contract allows a buyer to hold an offer to sell open for a set period?

The option to purchase contract is a type of agreement that allows a buyer to hold an offer to sell open for a specified period of time. This contract gives the buyer the exclusive right to purchase a property at a predetermined price within that time frame. Essentially, it grants the buyer an option without the obligation to follow through, which can be advantageous if the buyer wants to secure a property while exploring financing, making plans, or performing due diligence.

This option is particularly useful because it gives the buyer control over the decision to proceed with the purchase, while also ensuring that the seller cannot sell the property to someone else during the period of the option. This contrasts with other types of contracts, such as the right of first refusal, which gives the buyer a chance to buy but does not prevent the seller from considering other offers. A backup offer is typically a secondary offer made after another offer is already in place, and an installment land contract involves a financing method rather than holding an offer open.