Have you found a property that you might want to buy? Then our option to purchase form will help you reserve it first and give you precious time to consider.
If you are shopping for property, an option to purchase contract gives you the right to buy the property for pre-agreed within a fixed time limit. Take a closer look and you will find that option to purchase forms are actually one-sided agreements that favor the buyer.
The reason for this is simple: The buyer is given the right to buy the property but he is not required to make the purchase. On the other hand, the seller has to hand over the property to the buyer if the option is exercised.
Naturally there is no free lunch in real estate - The buyer has to pay the seller an option fee to enjoy this lovely benefit. In legal geek-speak, we call this "consideration".
For your real estate option contract to be legally binding, it must have a few vital ingredients: purchase price, expiry date and consideration (option fee). In general an option to purchase is assignable unless it is prohibited in writing. In plain English, this means that a buyer is allowed to transfer or sell the purchase right to another person.
The sample option to purchase form that we have below is a pure option agreement. If you want a real estate option contract that allows you to rent the property as well, Click here for our Rent to Own Contract.
*Make sure this form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
This option to purchase contract is made between the following parties:
______________________________, hereby known as the "Owner" and
______________________________, hereby known as the "Buyer".
The Owner hereby grants the Buyer an option to purchase the following Property:
Street Address: ________________________________________________________________
Property Description: ____________________________________________________________
The purchase price for the Property is $ _______________.
As consideration for this option to purchase, the Buyer shall pay the Owner a non-refundable fee of $ _______________. If the Buyer exercises this option, this fee shall be applied to purchase price at closing. If the Buyer does not exercise this option, this fee shall be retained by the Owner.
The term of this option will begin at _____ AM/PM on _______________ and expire at _____ AM/PM on _______________. The Owner agrees not to attempt the sale of the Property to any other party while this option is in effect.
To exercise this option, the Buyer must deliver a written notice of exercise of option to the Owner before the option expires.
If this option is exercised, the Owner shall pay the following closing costs: ________________
and the Buyer shall pay the following closing costs: ___________________________________
This option to purchase contract shall be binding upon both parties, their representatives and assigns.
Owner Name: ______________________________
Owner Signature: ______________________________ Date: _______________
Buyer Name: ______________________________
Buyer Signature: ______________________________ Date: _______________