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A Simple Option Agreement for a Commercial Landlord and Tenant gives the tenant the right to buy or lease the property, or extend the lease, within a specified timeframe and under agreed terms. The agreement outlines the option period, how the option is exercised, and any conditions that must be met for it to take effect.

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No, the option gives the tenant a right—not an obligation—to proceed with the purchase, lease, or extension within the specified period.

If the tenant does not exercise the option within the agreed timeframe, the option will typically expire and no longer be enforceable.

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