What happens once the optionee informs the optionor of the intention to proceed with the purchase?

When the optionee communicates their intention to proceed with the purchase, the option transitions into a binding purchase and sale contract. This transition signifies that the optionee is exercising their right to buy the property under the terms set out in the original option agreement. Upon receiving this notification, the optionor is then obligated to sell the property according to those pre-defined terms. This process solidifies the commitment of both parties and ensures that the optionee is now entering into a formal arrangement to purchase the property, as the option itself is a contractual agreement that grants the optionee exclusive rights to buy.

The other options suggest scenarios that do not align with the typical legal framework surrounding real estate options. For example, the expiration of the option or releasing the optionor from obligations would not occur simply because the optionee expressed their desire to proceed; such actions could potentially negate the terms previously agreed upon. Likewise, renegotiating the terms of the contract implies that a new agreement would need to be established, which contradicts the nature of exercising an existing option. The correct understanding emphasizes that once the optionee indicates their intent to move forward, the agreement solidifies into a binding contract, ensuring both parties have clear responsibilities.