what does option deposit mean in real estate
1 Option money is credited towards purchase: When you sign a Lease 2 Purchase contract, you will pay the seller an option deposit. 2  This money is your vested interest in the home and will be fully (100%) credited to you when you buy the home. Possible sale for a profit: If you are allowed to sell (assign) your option (it will be in your agreement), you may sell it to a third party for a profit. 2  Increased buying power: When you buy a Lease 2 Purchase home, you can put down as little as first month's rent and a $1 option deposit.