Short-selling individual properties...

Is it possible to short-sell individual properties like an investor would short sell stocks of google, etc.?

EXAMPLE:
I’ve been thinking about a scenario where an investor would approach a property owner and essentially bet that the property is going to depreciate in say, the next year. Win lose or draw the investor pays for the option lets say 3% of the properties current market value.

If the property appreciates during the contract period the investor can:

  1. Exercise their option and buy at the current market value.
  2. Chose not to exercise their option.

If the property fails to appreciate or depreciate during the contract period the investor can:

  1. Exercise their option and buy at the current market value.
  2. Chose not to exercise their option.

If the property depreciates during the contract period the investor can:

  1. Exercise their option and buy at the current market value.
  2. Exercise their option and place and place a lien on the subject property for the difference between the starting value and the current value.
  3. Chose not to exercise their option.

I’m almost positive that this is legal, but I have no idea how to make the process legally binding.

Any comments?