Option to Purchase Property

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									An Option to Purchase Property is an agreement between a vendor and a purchaser
whereby the vendor extends an option to purchase a property. Typically, the purchaser
is leasing the property with the option to purchase it within a specific period of time.
Should the purchaser not exercise the option to purchase the property, the option to
purchase will become null and void. This document contains standard clauses
commonly used in these types of agreements; however, additional language may be
added to allow for customization to ensure the specific terms of the parties' agreement
are addressed. Use this agreement to give a person or an entity an option to purchase
specified property.
       This Option to Purchase Property Agreement (this “Agreement”) is hereby made and
entered into on this ____ day of __________, 2_____ by and between ________________
(“Purchaser”) and ___________________ (“Vendor”).


      WHEREAS, Vendor is the sole and/or beneficial owner of the property municipally
known as ___________________ (the “Property”) and legally described as
____________________; and

       WHEREAS, Vendor is desirous to grant to Purchaser an exclusive option to purchase the
Property (the “Option”) in the form attached hereto as Schedule “A.”

       NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein and the payment of _______ dollars ($______) (the “Option Payment”) by Purchaser to
Vendor, the parties hereto hereby acknowledge and agree as follows.



1.01 Upon execution of this Agreement, Vendor hereby grants the exclusive Option to
Purchaser to purchase the Property municipally known as ____________________ and legally
described as ___________________ on the following terms and conditions:

       a.     Vendor and Purchaser hereby agree that the consideration payable by Purchaser to
              Vendor for the exclusive Option to purchase the property shall be the sum of
              _______________ dollars ($_______) (the “Purchase Price”), payable by
              Purchaser to Vendor by way of cash, certified check, or bank draft (the “Option

       b.     Vendor hereby acknowledges and agrees that the Option Payment received by
              Vendor from Purchaser shall be credited against the Purchase Price in the event
              Purchaser chooses to exercise the exclusive Option to purchase the Property;

       c.     In the event that Vendor fails to complete the sale of the Property to Purchaser,
              upon Vendor receiving written notice from Purchaser of its intent to exercise the
              Option (the “Option Notice”), Vendor shall immediately reimburse to Purchaser
              the Option Payment together with all costs incurred by Purchaser for Purchaser
              exercising the Option;
        d.      Vendor and Purchaser hereby acknowledge and agree, that upon execution of this
                Agreement by Vendor and Purchaser, Purchaser shall have _________ (____)
                days/weeks/months/years to exercise the exclusive Option granted to it by
                Vendor. In the event Purchaser does not exercise its exclusive Option to purchase
                the Property within the time frame set forth herein, the exclusive Option shall
                immediately become null and void and Vendor shall retain the Option Payment;

        e.      In the event Purchaser chooses to exercise the exclusive Option to purchase the
                Property from Vendor by the delivery by Purchaser to Vendor of the Option
                Notice, such delivery shall be deemed a legally and binding Agreement of
                Purchase and Sale in respect of the Property pursuant to the terms and conditions
                contained herein;

        f.      Vendor and Purchaser hereby acknowledge and agree that the standard provisions
                and conditions in respect to a purchase and sale of property shall apply, pursuant
                to the laws of the applicable jurisdiction;

        g.      Vendor and Purchaser hereby acknowledge and agree that this exclusive Option
                shall not be assignable by either Vendor or Purchaser to any third party;

        h.      Upon the completion of the purchase and sale of the Property, Vendor shall
                deliver vacant possession of the Property to Purchaser and shall do all things
                necessary and desirable to effect the transfer of title to the Property to Purchaser;

        i.      Vendor hereby represents and warrants to Purchaser that Vendor is the registered
                and beneficial owner of the Property, free and clear of any liens or encumbrances;

        j.      This Agreement constitutes the entire agreement between Vendor and Purchaser
                with respect to the specific subject matter hereof and supersedes all prior
                agreements or understandings of any kind with respect to the specific subject
                matter hereof;

        k.      Subject to the provisions hereof, this Agreement may not be assigned, in whole or
                in part, without the prior approval of each of the parties hereto;

        l.      This Agreement shall inure to the benefit of and shall be binding upon Vendor
                and Purchaser and their respective successors, heirs, executors, administrators,
                other personal and legal representatives (including trustees and receivers in
                bankruptcy), and permitted assigns;

        m.      No modification, supplement, termination, waiver, or amendment to this
                Agreement may be made unless agreed to by Vendor and Purchaser in writing;

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        n.      This Agreement shall be governed by and construed in accordance with the laws
                of the State of ________________ and the laws of __________ (enter country)
                applicable in that State and shall be treated, in all respects, as an ___________

       IN WITNESS WHEREOF Vendor and Purchaser have duly executed this Agreement
under their hands and seals as of the day, month, and year first written above.

Witness:                                            Vendor


                                                    I have authority to bind Vendor.

Witness:                                            Purchaser


                                                    I have authority to bind Purchaser.

© 2011 by Docstoc®, Inc.
                           SCHEDULE “A”
                           FORM OF OPTION

© 2011 by Docstoc®, Inc.

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