OPTION TO PURCHASE REAL ESTATE AGREEMENT
THIS AGREEMENT is made on [Date],
BETWEEN:
[Seller Name], of [Seller Address] ("Seller")
AND
[Buyer Name], of [Buyer Address] ("Buyer").
WHEREAS
- Seller is the owner of certain real property located at [Property Address] and more particularly described as [Legal Description of Property] ("Property");
- Buyer desires to obtain an exclusive option to purchase the Property from Seller on the terms set forth herein;
- Seller is willing to grant such an option to Buyer.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties agree as follows:
1. GRANT OF OPTION
1.1. Seller hereby grants to Buyer the exclusive and irrevocable option to purchase the Property ("Option") on the terms and conditions set forth in this Agreement.
1.2. The Option may be exercised by Buyer at any time during the Option Period (as defined below).
2. OPTION PERIOD
2.1. The Option shall commence on [Option Start Date] and expire at 5:00 p.m. on [Option Expiration Date] ("Option Period").
2.2. If Buyer does not exercise the Option within the Option Period, all rights under this Agreement shall terminate, and the Option Fee (if any) shall be handled as set forth herein.
3. OPTION FEE
3.1. In consideration for the Option, Buyer shall pay Seller the sum of [Option Fee Amount] ("Option Fee"), payable as follows: [Option Fee Payment Terms].
3.2. [Choose one: The Option Fee shall be applied to the Purchase Price if Buyer exercises the Option / The Option Fee shall be non-refundable and not applied to the Purchase Price.]
4. PURCHASE PRICE AND TERMS
4.1. If Buyer exercises the Option, the purchase price for the Property shall be [Purchase Price Amount] ("Purchase Price").
4.2. The Purchase Price shall be paid as follows: [Deposit Amount], with the balance of [Balance Amount] due at closing.
4.3. The sale shall be subject to the terms and conditions set forth in this Agreement and the attached Purchase and Sale Agreement (if applicable).
5. EXERCISE OF OPTION
5.1. Buyer may exercise the Option by delivering written notice to Seller at [Seller Notice Address] within the Option Period.
5.2. Upon exercise, the parties shall enter into a formal purchase and sale agreement substantially in the form attached as Exhibit A (if any), and proceed to closing as provided therein.
6. CLOSING
6.1. The closing of the purchase and sale of the Property ("Closing") shall take place on or before [Closing Date or Number of Days After Exercise], or at such other time as the parties may mutually agree in writing.
6.2. At Closing, Seller shall deliver good and marketable title to the Property, free and clear of all liens and encumbrances except as disclosed in this Agreement.
7. CONDITIONS PRECEDENT
7.1. The obligation of Buyer to purchase the Property is subject to the following conditions (if any):
- [e.g., satisfactory inspection, financing, title search, etc.]
7.2. If any condition is not satisfied or waived by Buyer, Buyer may terminate this Agreement by written notice to Seller.
8. REPRESENTATIONS AND WARRANTIES
8.1. Seller represents and warrants that Seller has full authority to enter into this Agreement and to sell the Property.
8.2. Buyer represents and warrants that Buyer has full authority to enter into this Agreement and to purchase the Property.
9. DEFAULT
9.1. If Buyer defaults after exercising the Option, Seller may retain the Option Fee and any other deposits as liquidated damages.
9.2. If Seller defaults, Buyer may seek specific performance or return of the Option Fee and any other remedies available at law or equity.
10. NOTICES
10.1. All notices under this Agreement shall be in writing and delivered to the parties at their respective addresses stated above (or such other address as a party may designate in writing).
11. ASSIGNMENT
11.1. Buyer may [may/may not] assign this Agreement or the Option without Seller’s prior written consent.
12. MISCELLANEOUS
12.1. Entire Agreement: This Agreement constitutes the entire understanding between the parties and supersedes all prior negotiations or agreements.
12.2. Amendment: Any amendment to this Agreement must be in writing and signed by both parties.
12.3. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country].
12.4. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original.
13. DISCLAIMER
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Option to Purchase Real Estate Agreement as of the date first written above.
SELLER:
Name: ___________________________
Signature: ______________________
Date: ___________________________
BUYER:
Name: ___________________________
Signature: ______________________
Date: ___________________________
