Option to Purchase Real Estate Agreement

Jon Gresham, (334) 300-2109 http://www.Heart-Dixie.com Option to Purchase Real Estate Agreement STATE OF ALABAMA COUNTY OF COVINGTON THIS AGREEMENT is made and entered into this ______ day of ___________________, 2007 by and between Jon Gresham, dba Heart of Dixie Real Estate and all title holders to the property (hereinafter referred to as "Optionor"), and Enter Buyer’s Name (hereinafter referred to as "Optionee"). WITNESSETH THAT, under the mutual promises and covenants hereinafter set forth, the parties hereto agree as follows: 1. CONSIDERATION: In consideration for the granting of this Option, the payment of a non-refundable Option Fee of ________________________ Dollars ($ ) (the "Option Consideration) paid as follows: , and other good and valuable consideration in hand paid to Optionor, the receipt and sufficiency whereof are hereby acknowledged by Optionor, Optionor hereby grants and conveys unto Optionee an exclusive Option to purchase property herein described. If any of these payments are not received ON time, by Optionor then all option consideration will be forfeited and forever be the property of the Optionor, and the Cross Default paragraph will be invoked. Payments are to/mailed to Optionor (JG): P.O. Box 38, Wing AL 36483. 2. PROPERTY: That certain real property with such improvements as are located thereon, and is described as follows: commonly known as Address: Cawthon Stokes Addition to Falco, Blocks A & B as West of Falco Rd, City: Wing, State: AL Zip: 36483 , the full legal description of said Property is the same as is recorded with the Clerk of the Superior Court of Covington County in which the Property is located and is made a part of this Agreement by reference. 3. TERM: The term of the Option shall be for a period of 12 months, commencing on the _____ day of __________________, 20_____, and expiring on the ______ day of ____________________, 20_____. The term of the Option may only be extended at the sole discretion of the Optionor. 4. PURCHASE PRICE AND METHOD OF PAYMENT: The initial agreed upon purchase price of the Property shall be: Four Thousand Eight Hundred Dollars, (U.S.) ( $4,800 ) until the _____ day of ____________________, 20____, Less a credit in the amount of the nonrefundable Option Fee/Consideration (discussed in “Consideration” paragraph above), which will be directly applied to the down payment on the new loan when this Option is executed, at time of purchase. [X] Applicable [ ] Not applicable After that, purchase price shall increase by One percent (1%) per calendar month thereafter until the exercising of this Option, to be paid in cash or its equivalent. [X] Applicable [ ] Not applicable Less a credit of One Hundred Dollars ($100 ) per month credited each month in which Optionee pays a monthly payment of One Hundred Dollars ($100) per month paid in advance on or before the 1st day of each and every month, ("Monthly Option Payment"). This credit will be directly applied to the purchase price when this Option is executed, at time of purchase. Any unsatisfied liens or judgments of Optionee must be cleared prior to or upon purchase of the Property. 5. EXERCISING OPTION: Option shall be exercised no later than the expiration date of this Option Agreement (including any extensions). The exercise of Option shall be evidenced by delivery of a ten (10) day written Notice of Intent to Exercise Option, fully executed by Optionee, and delivered to Optionor within the prescribed exercise period. In the event of the exercise of option, it is understood and agreed that if any Monthly Option Payment is received by owner during the term of this option, said Monthly Option Payment shall not be applied against the purchase price. Only the credit referred to in paragraph 4 above shall be applied to reduce the balance due Optionor upon exercise of the Option to Purchase. 6. DEFAULT: The prompt payment of the Monthly Option Payment is a major consideration in Optionor granting this Option. Default shall be defined as any Option Consideration payment being made ten (10) or more days after its due date. Acceptance of any late Monthly Option Payment does not constitute an automatic waiver of this provision. In the event of a default, or the expiration of this Agreement without exercising by Optionee, then all Monthly Option Payment credits will be forfeited and forever be the property of Optionor, with no other consideration of any kind whatsoever due to Optionee. 7. CROSS DEFAULT: If Optionee has entered into any other agreements concerning the Property described herein and Optionee defaults on any provisions of those agreement(s), then this Agreement shall also be considered in default and, at the option of Optionor, this Agreement may be voided and all monthly credits will be forfeited and forever be the property of Optionor. 8. PURCHASE AND SALE AGREEMENT: In the event of the exercise of Option, the sale of the Property from Optionor to Optionee shall be evidenced by a sufficient deed and closed as per a standard Real Estate Purchase and Sale Agreement provided by Optionor. Initials Page 1 of 2 Jon Gresham, (334) 300-2109 http://www.Heart-Dixie.com 9. TITLE: Optionee shall examine title to the Property and notify Optionor of any objection or defect affecting the marketability of the title to the Property at least thirty (30) days prior to exercising this Option Agreement. Any expense of curing title, including but not limited to legal fees, discharge of liens and recording fees will be paid by Optionor. It is specifically agreed and understood that NO Equitable Title in the Property has been created by this Option Agreement. Full title vests with Optionor until Optionee exercises the herein described Option to Purchase. Property will be conveyed subject to all liens, encumbrances, easements and restrictions of record. 10. NOTICES: All notices and payments required or permitted to be given to Optionee or Optionor hereunder shall be given in writing and be delivered, if to Optionee, at the Property address, and if to Optionor, at the address as contained in Paragraph 1 above. 11. SELLER'S DELINQUENCY: Should Optionor be delinquent on any payment due under any note and mortgage or should Optionor cause a notice of foreclosure to be filed, then Optionee may at Optionee’s discretion cure the default, and Optionee shall receive full credit towards the purchase price for every dollar expended, should Optionee exercise this Option. Should Optionee allow Option to expire all sums expended by Optionee, under this provision, shall be refunded to Optionee. 12. INSURANCE: During the term of this Option to Purchase, Optionor shall insure Property against physical damage, casualty etc., for an amount to be determined by Optionor's insurance carrier as the replacement value of the Property. 13. TRANSFERABILITY: This Option is not transferable to any other party and can be exercised only by the individual(s) who have signed this Agreement, acting in unison. This Option shall run with the Property and shall be binding upon any subsequent purchaser of the Property. 14. ALTERATIONS: Optionee shall not make, or allow to be made, any alterations or installations, of any kind to the Property without prior written permission of Optionor, provided, however, that notwithstanding such consent, all alterations including, without limitation, any items affixed to the Property, shall become the property of Optionor upon the termination of this Agreement. 15. REPAIRS: Optionee is responsible for the upkeep and repairs to the Property. As the future purchasers of the Property, Optionee further waives any and all rights they may have under repair provisions under applicable State Landlord-Tenant law regarding the landlord being responsible for all repairs. 16. TIME: Time is of the essence of this Option to Purchase Agreement. 17. SEVERABILITY: In the event that any part of this Agreement is construed as unenforceable, the remaining parts of this Agreement shall remain in full force and effect as though the unenforceable part or parts were not written into this Agreement. 18. GENDER: All references to Optionor or Optionee herein shall be construed to include the plural as well as the singular, and the masculine shall include the feminine and neuter where the context of this Agreement may require. 19. ENTIRE AGREEMENT: This Agreement and any attached addendum constitutes the sole and entire Agreement between the parties and no representation, promise, or inducement not included in this Agreement, oral or written, shall be binding upon any party hereto. 20. SPECIAL STIPULATIONS: The following stipulations shall control in the event of conflict with any of the foregoing: IN WITNESS WHEREOF, the parties have signed this Agreement the day and year first above written. _____________________________ Optionor or Agent for Optionor _________ Date ________________________________ Optionee _________ Date ____________________________ Optionor _________ Date ________________________________ Optionee _________ Date Initials Page 2 of 2