Forfeiture terms provide that the optionee is entitled to the consideration if the option term expires. that the tenant can be evicted and forfeit all moneys paid if he/she fails to exercise the option. that the optionor is entitled to the consideration if the option term expires. that the optionee is entitled to the consideration if the option term is extended.

What is forefeiture terms in real estate?

that the tenant can be evicted and forfeit all moneys paid if he/she fails to exercise the option.

Explanation

Forfeiture terms in "option to buy contract/agreement " in real estate simply means a seller (optionor)will recover the right to the ownership of his property from the buyer (optionee), if the optionee failed to buy or purchase outrightly on a land installment contract, before the expiration of the option terms.

It can also referred to the requirements by the party that breach the agreement (in this explanation, that is optionee) to forfeit or lose the ownership of an asset, as compensation for the resulting loss to the other party (optionor).

Hence,the tenant/optionee can be evicted and forfeit all moneys paid if he/she fails to exercise the option.

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