Option to Purchase Agreement is an agreement between a seller of a property and a buyer whereby the seller gives an option to the buyer to buy the property in lieu of an option fee to purchase a particular property at a future time at the purchase price.
OPTION TO PURCHASE AGREEMENT This Option to Purchase Property (the “Option”) is made and effective as on _________________(“Effective Date”) BETWEEN: ___________________ (the "Seller"), with its head office located at: AND: ___________________ (the "Buyer"), with its head office located at: RECITALS A. Seller owns a certain real property described in 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
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