What is an active option contract?
An active option contract means the seller has accepted an offer on their home and the property is now in the option period. During this time, the buyer has the unrestricted right to terminate the contract for any reason without risking their earnest money deposit. This is also the time in which the home inspection will occur.
The agreed upon length of the option period and the amount of the option fee will be outlined in the Purchase Contract. If the buyer decides to terminate the contract during the option period, the seller has the right to keep the option fee.
See also Option Fee and Pending - Taking Backups.