Australia Option Agreement to Buy Real Estate by Megadox

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									                 OPTION TO BUY REAL ESTATE AGREEMENT
                                          (RESIDENTIAL)

THIS AGREEMENT made effective this [##] day of [month], [year].

BETWEEN:

[Full Name of Seller]
[Full Address of Seller]
(herein referred to as the "Seller")

- and -

[Full Name of Purchaser]
[Full Address of Purchaser]
(herein referred to as the "Purchaser")


The Seller is the lawful owner and has the right to sell the following described real estate:

[Full Legal Description of Property]

located at:

[Full Street Address of Property]

(herein referred to as the “Property”)

For valuable consideration, the Seller agrees to provide the Purchaser an exclusive option to buy the
Property on the following terms and conditions:

1.      The Purchaser shall pay the Seller an option fee of [$###.##]. If the option to buy is exercised
by the Purchaser, the said option fee shall be applied towards the purchase price of the Property. If
the option to buy is not exercised by the Purchaser, the Seller shall retain the said option fee.

2.     This Agreement shall terminate on the [##] day of [month], [year] (herein referred to as the
“Termination Date”).

3.     Until the Termination Date, the Purchaser has the exclusive right to buy the Property for the
purchase price as set out in the Contract for Sale of Residential Property between the Seller and
Purchaser.

4.       If the Purchaser chooses to exercise the option to buy, the Purchaser must notify the Seller,
and the Seller must receive the notification before the Termination Date. The said notification must be
in writing and delivered to the Seller’s address as written above.

5.       Attached to this Agreement is the Contract for Sale of Residential Property between the Seller
and Buyer dated the [##] day of [month], [year]. If the Purchaser notifies the Seller of the decision to
exercise the option to buy as indicated in paragraph 4 hereof, the Seller and Purchaser agree to sign
the Contract for Sale of Residential Property and complete the sale on the terms and conditions
contained therein. If the Seller has not received written notification of the option to buy from the
Purchaser by the Termination Date, the said Contract for Sale for Residential Property between the
Seller and Purchaser is terminated.
                                                    -2-


6.      This Agreement may not be modified and any modifications shall not be effective unless in
writing and signed by both the Purchaser and Seller.

7.       This Agreement shall enure to the benefit of and be binding upon the parties hereto and their
respective heirs, administrators, executors, successors and assigns. This Agreement and any
attachments constitute the entire agreement between the parties to this Agreement and supersedes all
prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral
or written, of the parties. There are no warranties, representations or other agreements between the
parties in connection with the subject matter of this Agreement except as specifically set forth herein.

8.      Time is of the essence of this Agreement.

9.      This Agreement shall be governed by and construed in accordance with the laws of the State
of ____________________ and the parties hereby attorn to the jurisdiction of the courts of the said
State.




Seller Signature                                          Seller Name

aust


Seller Signature                                          Seller Name




Purchaser Signature                                       Purchaser Name



Purchaser Signature                                       Purchaser Name
                  SALE OF HOUSE AND LAND AGREEMENT

1.      In this Sale of House and Land Agreement (the “Agreement”),

        (a)     “Address for Service” (including telephone number, fax number, and email address)

                (i)     in the case of the Seller means:

                        [insert complete details]

                (ii)    in the case of the Purchaser means:

                        [insert complete details]

                (iii)   in the case of the Seller’s Agent means:

                        [insert complete details]

                (iv)    in the case of the Purchaser’s Agent means:

                        [insert complete details]

                (v)     in the case of the Seller’s Solicitor means:

                        [insert complete details]

                (vi)    in the case of the Purchaser’s Solicitor means:

                        [insert complete details]

        (b)     “Adjustment Date” means the earlier of:

                (i)     the possession date as given to the Purchaser; or

                (ii)    the Settlement Date.

        (c)     “Balance Purchase Price” means the amount payable by the Purchaser on the
                Settlement Date after the applicable Deposit has been deducted from, and all
                Adjustments have been either deducted from or added to, the Purchase Price of the
                Property.

        (d)     “Bank Bond” means a guarantee by the lender (issuer of the bank bond) that the
                Purchaser will pay the Deposit on the Settlement Date.

        (e)     “Business Day” means a day of the week, other than Saturday, Sunday or any other
                day which is a statutory or municipal holiday in [state] or in the municipality in
                which the Property is located.

        (f)     “Deposit” means $[##,###.##] paid in lawful money of Australia upon acceptance of
                this Agreement by the Purchaser.

        (g)     “Deposit Holder” means: [full legal name and address of Deposit Holder].



__________ Purchaser’s Initial(s)                                         __________ Seller’s Initial(s)
                                                 -2-



        (h)     “Finance Date” means the date by which the Purchaser shall obtain approval for
                financing relative to the purchase of the Property. For the purposes of this
                Agreement, this date is the [##] day of [month], [year].

        (i)     “Inspection Date” means the date by which inspections of the property by the
                Purchaser or property inspector shall be completed. For the purposes of this
                Agreement, the Inspection Date is the [##] day of [month], [year].

        (j)     “Outgoings” means all government and local government rates and charges on the
                land including but not limited to land tax; water, sewer and general rates; fire levy;
                and all periodic charges up to and including the Adjustment Date.

        (k)     “Permitted Encumbrances” means the encumbrances listed in Schedule “C” herein.

        (l)     “Property” means the property described in Schedule “B” hereto, together with all
                fixtures and buildings located thereon and including the Specific Chattels, plus their
                improvements, as stated in Schedule “D” herein. Any chattels and their
                improvements not stated in Schedules “B” and “D” herein are deemed to not be a
                part of the Property.

        (m)     “Purchase Price” means $[###,###.##] in lawful money of Australia.

        (n)     “Purchaser” means [full legal name of individual(s)/entity buying the Property].

        (o)     “Seller” means [full legal name of individual(s)/entity selling the Property].

        (p)     “Settlement Date” means the [##] day of [month], [year] OR [##] days from the date
                of this Agreement.

        (q)     “Settlement Place” means [town or city].

        (r)     “Specific Chattels” means the chattels described in Schedule “D” herein.

        (s)     “Transfer Documents” means all documents required to transfer title of the Property
                to the Purchaser.

2.      The Purchaser hereby offers to purchase the Property from the Seller, on the Settlement Date,
        free and clear of all liens and encumbrances, save and except for the Permitted Encumbrances
        in Schedule “C” herein and on the terms and conditions set forth in Schedule “A” herein.

DATED this [##] day of [month], [year].


(Purchaser Signature)                                      (Witness Signature)


Purchaser Name                                             Witness Name


(Purchaser Signature)                                      (Witness Signature)


Purchaser Name                                             Witness Name



__________ Purchaser’s Initial(s)                                          __________ Seller’s Initial(s)
                                                -3-




ACCEPTANCE

Seller hereby accepts the foregoing offer.

DATED at [##:##] o’clock (a.m./p.m.) on the [##] day of [month], [year].



(Seller Signature)                                     (Witness Signature)



Seller Name                                            Witness Name



(Seller Signature)                                     (Witness Signature)



Seller Name                                            Witness Name




__________ Purchaser’s Initial(s)                                          __________ Seller’s Initial(s)
                                                    -4-



                                           SCHEDULE “A”
                                TERMS AND CONDITIONS OF SALE

1.      Purchase Price

1.1.    The Purchase Price shall be payable as follows:

        (a)       The Deposit by way of a cheque in the sum of [number in words] DOLLARS
                  ($[##,###.##]) delivered with this offer and payable to the Deposit Holder as
                  stakeholder.

        (b)       The Balance Purchase Price of [number in words] DOLLARS ($[###,###.##]) subject
                  to adjustments in accordance with this Agreement, plus all GST, if any, payable in
                  respect of this transaction, shall be paid on the Settlement Date by bank cheque,
                  delivered and payable to the Seller's solicitors to be held in trust upon reasonable
                  trust conditions or undertakings, pending the confirmation of registration of the
                  transfer at the Land Titles Office, and issuance of Title in the name of the Purchaser
                  subject only to the Permitted Encumbrances.

1.2.    The Deposit shall be held by the Deposit Holder and may be invested by the Deposit Holder
on the following conditions:

        (a)       The Deposit shall only be invested with a Bank, Building Society, or Credit Union in
                  an interest bearing account solely at the risk of the party entitled to the Deposit.

        (b)       The interest earned in the account as stated in Section 1.2 (a) herein shall be paid to
                  the party entitled to the Deposit as set forth in this Agreement.

        (c)       The party entitled to the income from the Deposit, as set forth in this Agreement, is
                  solely responsible for all tax liabilities on the income received from the invested
                  Deposit. Such tax liabilities include GST and Income Tax.

        (d)       The party entitled to the income from the Deposit, as stated in Section 1.2 (c) herein is
                  solely responsible for all costs associated with the invested Deposit.

and shall be applied to the Purchase Price, but:

        (e)       If the Purchaser fails to complete and perform its obligations hereunder, the Deposit
                  shall be forfeited to the Seller without prejudice to any other right or remedy
                  available to the Seller.

        (f)       If the Seller fails to complete and perform its obligations hereunder, the Deposit shall
                  be returned to the Purchaser without prejudice to any other right or remedy available
                  to the Purchaser.

1.3.   The Purchaser may pay the Deposit (in whole or in part) by Bank Bond. Receipt of the Bank
Bond shall satisfy the Purchaser’s obligation to pay the Deposit to the extent of the Bank Bond’s
amount. The Bank Bond is not eligible for investment by the Deposit Holder.

2.      Finance

2.1.   This Agreement is subject to and conditional upon the Purchaser obtaining financing for the
purchase of the Property. Said financing shall be on terms and conditions satisfactory to the
Purchaser.

__________ Purchaser’s Initial(s)                                            __________ Seller’s Initial(s)
                                                  -5-




2.2.    The Purchaser shall make every reasonable effort to obtain the required financing by the
Financing Date.

2.3.     The Purchaser shall immediately notify the Seller, in writing, upon the Purchaser’s approval
or rejection of financing.

2.4.     If the Purchaser is unsuccessful in obtaining financing, the Purchaser may, by written notice
to the Seller:

        (a)     terminate the Agreement; or

        (b)     waive the benefit of this condition,

2.5.     If the Seller has not received notification from the Purchaser regarding the outcome of the
financing application or notification as stated in Section 2.4 herein, by 5:00 pm on the Finance Date,
the Seller may, at the Seller’s sole discretion, terminate this Agreement by giving written notice to the
Purchaser.

2.6.    If this Agreement is terminated in accordance with this Section 2 herein, the Purchaser shall
be refunded any Deposit monies paid.

3.      Property Inspection

3.1.    This Agreement is subject to and conditional upon the Purchaser obtaining a Property
inspection and/or pest report by the Inspection Date, satisfactory to the Purchaser and excluding
acknowledged defects/exclusions.

3.2.   The Purchaser or the Purchaser’s representative, upon giving reasonable notice to the Seller,
may inspect the Property at a reasonable time in order to:

        (a)     obtain a Property inspection and/or pest report;

        (b)     obtain a Property valuation for purposes of acquiring purchase financing;

        (c)     conduct a pre-Settlement inspection for purposes of Section 5.10 herein.

3.3.    If the Property inspection and/or pest report is unsatisfactory to the Purchaser, the Purchaser
may, at the Purchaser’s sole discretion, give written notice to the Seller by the Inspection Date and
terminate this Agreement.

3.4.    If the Seller does not receive written notice from the Purchaser of an unsatisfactory Property
inspection and/or pest report by the Inspection Date, the Purchaser is deemed to be satisfied with the
Property inspection and/or pest report.

3.5.    The Purchaser, at all times, shall act reasonably.

3.6.   If the Purchaser terminates this Agreement in accordance with Section 3.3 herein, the
Purchaser shall, at the Seller’s request, promptly provide copies of the relevant sections of the
Property inspection and/or pest reports relied upon by the Purchaser to terminate this Agreement.

3.7.  If the Purchaser refuses to comply with the Seller’s request in Section 3.6 herein, it shall be
deemed that the Purchaser is not acting reasonably.



__________ Purchaser’s Initial(s)                                           __________ Seller’s Initial(s)
                                                    -6-



3.8.    A risk of white ants noted in the Property inspection and/or pest report shall not constitute a
reason for the termination of this Agreement.

3.9.    If this Agreement is terminated in accordance with this Section 3 herein, the Purchaser shall
be refunded any Deposit monies paid.

4.      Tenancies

4.1.    Any tenancies on the Property are listed on Schedule “E” herein.

4.2.   The Seller is entitled to any rents and profits on the Property up to and including the
Adjustment Date.

4.3.    The Purchaser is entitled to any rents and profits on the Property after the Adjustment Date.

4.4.    There will be no adjustment made for unpaid rent at Settlement.

5.      Settlement

5.1.    Subject to Section 5.4 herein, Settlement shall take place on the Settlement Date between
[##:##] am and [##:##] pm at a venue agreed to by all parties or, if no agreement is reached:

        (a)     at the Seller’s mortgagee’s or solicitor’s office; or

        (b)     at the nearest place, nominated for Settlement, where Land Title documents may be
                registered.

5.2.     The Purchaser shall deliver to the Seller, at a reasonable time before Settlement, Transfer
Documents for the land, assignments, or other documents necessary for Settlement and for the
Seller’s execution.

5.3.     The Seller shall provide to the Purchaser no later than [##:##] pm on the business day before
the Settlement Date, complete details of all cheques required to pay in full the Balance Purchase Price.

5.4.    If the Purchaser does not receive the details by the time as stated in Section 5.3 herein, the
Purchaser has the right, upon request, to a 24 hour extension of the Settlement Date. Such request by
Purchaser shall be given to the Seller no later than [##:##] pm on the Business Day before the
Settlement Date.

5.5.   Upon payment by the Purchaser of the Balance Purchase Price via bank cheque(s) as
provided by the Seller in Section 5.3 herein, and subject to compliance by the Purchaser to the terms
and conditions of this Agreement, the Seller shall deliver to the Purchaser:

        (a)     the instrument of title for the land;

        (b)     fully executed Transfer Documents free of all encumbrances, except for Permitted
                Encumbrances as stated in Schedule “C” herein, ready for registration and in a form
                compliant with the Land Titles Act;

        (c)     all keys, entry, exit & security codes and devices;

        (d)     all documentation, including Bond transfers, to comply with and give effect to
                provisions of the Residential Tenancies Act.



__________ Purchaser’s Initial(s)                                          __________ Seller’s Initial(s)
                                                   -7-



        (e)      any other assignments, warranties, etc. to which the Purchaser may reasonably be
                 entitled.

5.6.    The Purchaser shall bear the cost of no more than four (4) bank cheques in payment of the
Balance Purchase Price.

5.7.  If, on Settlement, the Title document relates to other land, the Seller shall provide the
document relating to that land to allow for registration of the transfer of Title.

5.8.     Upon payment of the Balance Purchase Price by the Purchaser, vacant possession of the land
(except if tenanted) and title to all the Property shall be given to and pass to the Purchaser.

5.9.    The Seller shall hand over the Property at Settlement free of damage and without loss of
condition as at the date of this Agreement (normal wear and tear excepted).

5.10.    If the Property is not in the condition as stated in Section 5.9 herein, the Purchaser may, at the
Purchaser’s sole discretion, claim reasonable costs from the Seller, as liquidated damages, to effect
repairs to the Property in order that it may be returned to its previous condition, as at the date of this
Agreement, notwithstanding that Settlement may have taken place.

6.      Adjustments

6.1.    The Seller is liable for all Outgoings on the Property up to and including the Adjustment
        Date.

6.2.    The Purchaser is liable for all Outgoings on the Property after the Adjustment Date.

6.3.    All Outgoings pursuant to Sections 6.1 and 6.2 herein shall be apportioned on the Adjustment
Date.

6.4.     The land tax for the Property will be apportioned as if the Seller is a natural person resident
in [State] and the Property is the Seller’s only land in [State].

6.5.     If the Outgoings have not been assessed by the Adjustment Date, any apportionment shall be
based on the sum provided by the applicable relevant authority or, if no information is available, on
the latest assessment.

6.6.    Any Outgoings
								
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