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.
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. OPTION TO PURCHASE PROPERTY AGREEMENT 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”). RECITALS 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 ($______) (the “Option Payment”) by Purchaser to Vendor, the parties hereto hereby acknowledge and agree as follows. TERMS 1.00 OPTION PROVISIONS 1.01 Upon execution of this Agreement, Vendor hereby grants the exclusive Option to Purchaser to purchase the Property municipally known as ____________________ and legally described as ___________________ on the following terms and conditions: a. Vendor and Purchaser hereby agree that the consideration payable by Purchaser to Vendor for the exclusive Option to purchase the property shall be the sum of _______________ dollars ($_______) (the “Purchase Price”), payable by Purchaser to Vendor by way of cash, certified check, or bank draft (the “Option Payment”); 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; and © 2011 by Docstoc®, Inc. 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 ___________ contract. 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 or VENDOR Per: Name: Title: I have authority to bind Vendor. Witness: Purchaser or PURCHASER Per: Name: Title: I have authority to bind Purchaser. © 2011 by Docstoc®, Inc. SCHEDULE “A” FORM OF OPTION © 2011 by Docstoc®, Inc.
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