Option to Purchase Agreement

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					An Option to Purchase Agreement is between a seller of property and a buyer, whereby
the seller gives an option to the buyer to buy the property at a future time at a specific
price. This document contains standard clauses commonly used in these types of
agreements; however, additional language may be added allowing for customization to
ensure the specific terms of the parties' agreement are addressed. Use this agreement
to grant an option to allow a buyer to purchase property at a specific date and at a
specific price.
                 OPTION TO PURCHASE AGREEMENT


This Option to Purchase Property (the “Option”) is made and effective as on
_________________ (“Effective Date”) by and between ___________________ (the "Seller"),
and ___________________ (the "Buyer");
                                         RECITALS

A. Seller owns certain real property described on Exhibit A hereto (the Property”).

B. Buyer desires to obtain an option to purchase the Property from Seller and Seller is willing to
grant such an option to Buyer.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereby agree as follows:


1.       GRANT OF OPTION TO PURCHASE

The Seller grants to the Buyer, on the terms of this Option, an option to purchase the Property at
the Purchase Price.

The option is granted by the Seller to the Buyer in consideration of payment of the Option Fee.

Upon payment, the Option Fee shall immediately become the property of the Seller.

This Option is simply purchased by the Buyer and the Buyer is not required to purchase the
property. The Seller will hold ownership of the property for the Option Period. In the event this
Option is exercised, all consideration paid for the Option shall be applied against the Purchase
Price. In the event that Buyer does not exercise the Option, the consideration paid to Buyer for
the Option may be retained by Seller without deduction or offset. If the Buyer does not exercise
the Option and the Option expires, the Seller is under no further obligation to the Buyer.

2.       OPTION FEE

The Option Fee for the Property, which the Buyer agrees to pay and the Seller agrees to accept,
shall be the sum of $....................................

The Option Fee is not refundable upon exercise of the Option.

3.       PURCHASE PRICE

The Purchase Price for the Property is $..........................
4.    OPTION PERIOD

The Option may be exercised at any time from the making of this agreement until 5 pm on the
............. day of .............................. (the “Option Period”)

5.    EXERCISE OF THE OPTION

In order to exercise the Option, the Buyer must make all payments due up to the date of exercise
under the Option. This includes but is not limited to:

5.1 Payment of the Option Fee. All outstanding payments for the Option Fee must be paid in full
    prior to exercising the Option. The Option is irrevocable provided the Option Fee has been
    paid in full. The Option is not deemed to have been exercised until such time as the Buyer
    gives Notice of Intent to Purchase to the Seller during the Option Period.


5.2 Notice of Intent to Purchase will not be deemed to be given unless it is:

(a)      On the form specified in Schedule 1; and
(b)      Signed by the Buyer                 and
(c)      Delivered to the Seller at the address specified in this          Option to Purchase.


6.    EFFECT OF EXERCISE OF THE OPTION

Upon the Seller receiving Notice of Intent to Purchase, the Seller will be bound to sell and the
Buyer bound to purchase the property for the Purchase Price and on the terms of the Contract of
Sale.

Upon exercise, the Seller shall be bound by the Contract of Sale as Seller and the Buyer shall be
bound by the Contract of Sale as Buyer.

The date of the Contract of Sale shall be the date upon which the Option is validly exercised in
accordance with this agreement.

7.    SETTLEMENT OF THE CONTRACT FOR SALE AND PURCHASE

The Seller must provide the Buyer with a signed Contract of Sale within _____ days of the date
that the Buyer exercises the Option.

Settlement of the Contract for the Sale and Purchase of the Property shall be effected within
_________________________ days after the date of the exercise of the Option.
8. FAILURE TO EXERCISE THE OPTION

If the Buyer fails to validly exercise the Option in accordance with this Agreement within the
Option Period, then the Option will lapse. All interests in the property held by the Buyer by way

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of this agreement shall immediately terminate.

The Buyer shall have no right to recover the Option Fee received by the Seller in consideration
of the Option.

9.    REPRESENTATIONS AND WARRANTIES OF SELLER

The Seller represents and warrants to the Buyer that:

9.1 The Seller has full power and authority to execute and deliver this Agreement, and this
Agreement is a valid and binding agreement enforceable against the Seller in accordance with its
terms;

9.2 Neither the execution of this Agreement nor the sale of the Property will constitute a
violation of, or conflict with, or default under, any contract, commitment, agreement,
understanding or arrangement to which the Seller is a party or by which Seller is bound or of any
law, decree, or judgment;

9.3 Now and up to the time of exercise of the Option, the Seller will have valid title to the
Property, free and clear of all claims, liens, charges, encumbrances, deeds of trust and security
interests other than __________________.

10.       COOPERATION

Each party shall , upon request of the other party, promptly execute and deliver all additional
documents and do all such things or acts reasonably construed to be required by the requesting
party to complete and evidence the sale, assignment and transfer of the Property pursuant to this
Agreement.

11.       SURVIVAL

All representations, warranties and agreements made by the Seller and by the Buyer in this
Agreement shall survive the execution of this Agreement and any Closing and any investigation
at any time made by or on behalf of any party hereto.

12.      MODIFICATION; ASSIGNMENT

This agreement may not be modified, amended, altered or supplemented except upon the
execution and delivery of a written agreement executed by the parties hereto. Buyer may assign
his rights under this Agreement with the consent of Seller.

11.      SUCCESSORS

This Agreement will be binding upon, inure to the benefit of and be enforceable by and against
the parties hereto and their respective heirs, beneficiaries, executors, representatives and
permitted assigns.

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12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of
_______________.

13. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement among the parties with respect to its subject
matter and supersedes all agreements, understanding, representations, or warranties, whether oral
or written, by or among the parties, previously or contemporaneously made or given.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

SELLER

____________________________________
Authorized Signature

______________________________________
Print Name and Title

BUYER

_____________________________________
Authorized Signature

_____________________________________
Print Name and Title




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EXHIBIT A

Description of Property




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SCHEDULE 1

Notice of Intent to Purchase:

To ......................................
          (Seller)

Pursuant to Clause 5 of the Option between

............................................................................................................................. and
                                                (Seller)

...................................................................................................dated ........................,
                                               (Buyer)                                                                             (date)

Buyer hereby exercises the Option to purchase the Property.


Signed by the abovementioned Buyer on this............. day of ..................... ___


           ............................................                           ................................................
                       (name)                                                                 (signature)




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DOCUMENT INFO
Description: An Option to Purchase Agreement is between a seller of property and a buyer, whereby the seller gives an option to the buyer to buy the property at a future time at a specific price. This document contains standard clauses commonly used in these types of agreements; however, additional language may be added allowing for customization to ensure the specific terms of the parties' agreement are addressed. Use this agreement to grant an option to allow a buyer to purchase property at a specific date and at a specific price.
This document is also part of a package Real Estate Forms for your Business 46 Documents Included