VIEWS: 213 PAGES: 6 CATEGORY: Real Estate POSTED ON: 1/15/2011
This Option to Grantor to Repurchase clause is used in agreements, whereby the Grantor may exercise his or her option to repurchase certain real property for certain consideration. The option granted to the Grantor is to be exercised within a certain time frame. This document proves to a person or party that has already granted real property the right to repurchase that same property under specified circumstances. Use this document if one wants to repurchase property that one has granted away.
This Option to Grantor to Repurchase clause is used in agreements, whereby the Grantor may exercise his or her option to repurchase certain real property for certain consideration. The option granted to the Grantor is to be exercised within a certain time frame. This document proves to a person or party that has already granted real property the right to repurchase that same property under specified circumstances. Use this document if one wants to repurchase property that one has granted away. OPTION TO GRANTOR TO REPURCHASE 1. Pursuant to the terms of this agreement (the “Agreement”), the grantor of the real property (the “Grantor”) shall have the right and option to purchase the real property located at _____________________ [Instruction: Insert property address.] and more particularly described as _____ [Instruction: Insert legal description of property, including section, block and lot.] (the “Real Property”) which is conveyed and transferred pursuant to that certain deed dated as of _______ [Instruction: Insert deed date.] and recorded in ______ [Instruction: Insert place of recording.] as _______ [Instruction: Insert recording information.] for the consideration of _____________ ($________) [Instruction: Insert amount of money property transferred for.] United States Dollars (the “Deed”). The Grantor shall have the right and option to purchase the Real Property within _____ (___) [Instruction: Insert amount of time in which Grantor shall have repurchase right.] months/years from the date of the Deed. In the event the Grantor chooses to exercise the option granted herein, the option to purchase the Real Property shall form a lien on the Real Property in first position and shall attach to the Real Property and run with the land the Real Property is situated on, and Grantee shall bear all costs and responsibilities, if any, with respect to ensuring this first position, including but not limited to notifying any lender of Grantee regarding this Agreement. [Comment: Parties should state whether this option is an exclusive option to purchase.] 2. In the event the grantee of the Real Property as set forth on the Deed (the “Grantee”) [Comment: If Grantee is meant to be any person other than Grantee as set forth on the Deed, must state so in this document.] has legal proceedings commenced against him/her/it or Grantor is placed on notice that Grantee intends to file a petition for bankruptcy or intends to become insolvent, or Grantee does file a petition for bankruptcy or does become insolvent, the Grantor shall have the right to immediately exercise the option granted herein to purchase the Real Property. 3. In the event the Grantor chooses to exercise the option granted herein to purchase the Real Property in the time frame set out herein, the Grantor shall deliver a written notice to the Grantee, by registered or certified mail, not less than _____ (___) [Instruction: Insert written number of days, followed by numerical representation of same.] days’ prior to the Grantor intending to exercise the option to repurchase the Real Property, in the form annexed hereto as SCHEDULE “A” [Comment: Ensure SCHEDULE “A” is attached.] and shall deliver to _____ (the “Escrow Agent”) [Instruction: Insert name of person who will act as Escrow Agent.] the sum of __________ ($_______) [Instruction: Insert amount of money to be transferred.] United States Dollars. The parties hereby acknowledge and agree that Escrow Agent will act under a separate agreement to be entered into between the parties, such agreement which will set forth the parties rights, obligations and understandings with respect to matters regarding the Escrow Agent. Upon the Escrow Agent receiving such sum, Escrow Agent shall within ___ (__) [Instruction: Insert number of days.] days deliver a Deed to the Grantor, as well as any other documents required to effectuate a transfer, including but not limited to, © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2 any required tax documents, evidencing the conveyance and transfer of the Real Property by the Grantee. Any costs of closing, including the fee of Escrow Agent, if any, shall be paid by ______. [Instruction: Insert which party shall pay closing fees.] Each party shall pay any tax or filing fee incurred by such respective party. Grantor shall pay any costs incurred in any title, lien search or other similar search conducted by Grantor. 4. In the event Grantee fails to close the repurchase of the Premises pursuant to the terms and provisions of this Agreement Grantor shall be entitled to either sue for specific performance of this Agreement or terminate this Agreement and sue for money damages, at Grantor’s sole discretion. 5. This Agreement shall be construed and governed in accordance with the laws of the State of _____. [Instruction: Insert governing state.] 6. This Agreement shall apply to, inure to the benefit of and be binding upon and enforceable against the parties hereto and their respective heirs, assigns and successors. 7. Neither party to this Agreement shall be permitted to assign this Agreement. [Comment: The parties can revise this sentence if either or both parties will be permitted to assign. Please note, if a lender has any security interest in the property, it is possible they will not permit this Agreement to be assigned. The lender should be notified prior to permitting any assignment.] 8. This Agreement contains all of the terms, promises, covenants, conditions and representations made or entered into by or between Grantor and Grantee and supersedes all prior discussions and agreements whether written or oral between Grantor and Grantee with respect to the option to repurchase and all other matters contained herein and constitutes the sole and entire agreement between Grantor and Grantee with respect thereto. This Agreement may not be modified or amended unless such amendment is set forth in writing and executed by both Grantor and Grantee with the formalities hereof. 9. This Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and shall be effective as of the formal date hereof. This Agreement may be executed and transmitted via e-mail and/or facsimile transmission and in such event shall be effective and binding on the parties hereto and their successors and assigns as if originally executed. 10. If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other provisions, but such unenforceable provision shall be deemed modified or deleted to the extent necessary to render it enforceable, preserving to the fullest extent permissible the intent by the parties set forth therein. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3 In Witness Whereof, the Parties hereto have caused this Agreement to be executed on this ____ day of ____, 20___. [Instruction: Insert Agreement date.] __________________________ Grantor __________________________ Grantee © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 4 SCHEDULE “A” © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 5
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