Optionee

Optionee is a term used in contract law and finance to denote the party who holds an option, that is, the right but not the obligation to buy or sell a specified asset at a predetermined price within a defined period. The counterparty who grants the option is commonly called the optionor or grantor. In many contexts, especially real estate and corporate option agreements, the optionee pays consideration (often called option money or a premium) to secure the exclusive right to act within the agreed timeframe.

In real estate options, the optionee gains the right to purchase a property at a set price during the option period. The option generally requires consideration and may be accompanied by terms such as a lease with option to buy. If the option is exercised, a binding purchase agreement is formed, followed by a closing. If the option lapses unexercised, the option terminates and the optionee typically loses the paid consideration.

In other markets, the term may be used to describe the holder of an option contract, such as a stock option, though the more common terminology is option holder. Regardless of context, the optionee’s rights are subject to the contract’s terms, including expiration dates, exercise procedures, and any conditions precedent. Real property options are often governed by statutes requiring written agreements to be enforceable, with the option price and term clearly specified.