The money that is exchanges is commonly referred to as the premium.
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Although option trading has more than its fair share of jargon remember the essence of all markets is that there is a buyer and a seller and both believe they have an advantage and have the potential to make money.
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The seller in this case was obliged not to sell that piece of land to anyone else for the next sixty days.
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If you apply the example of the property deal to the stock market you get the same situation.
This will give the individual who bought the put option the right to sell that option at and agreed price (strike price) on or before a specific date (expiration date).