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Grant a tenant or other potential purchaser an option to buy a property in Australia with this Option Agreement to Buy Real Estate.
- The prospective buyer is granted an exclusive option to purchase the property, so long as the option is exercised prior to a specified termination date.
- If the purchase option is exercised, the buyer must pay an option fee, which will be applied to the purchase price of the real estate property.
- The document includes a Sale of House and Land Agreement.
The Australia Option Agreement to Buy Real Estate is provided in MS Word format and can be easily edited.
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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