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An agreement providing a party an option to purchase real estate in a 1031 exchange.
OPTION TO PURCHASE REAL ESTATE (1031 Tax Deferred Exchange) THIS AGREEMENT is an exclusive Option to Purchase Real Estate from ______________________________, hereinafter called "Seller", whose mailing address is ____________________________, granted this ___ day of _________, _______, to ______________________, hereinafter called "Buyer" whose mailing address is _____________________________, conveying the right to purchase the real property, buildings, improvements and appurtenances located at _________________________, and which property is described on "Exhibit A" which is attached hereto and made a part hereof (the "Premises"). 1. GRANTING OF OPTION. In consideration for the sum of ________________________ ($____________) (the "Option Price") paid this date by Buyer to _________________, as a disinterested qualified intermediary, (the "Qualified Intermediary") the receipt and sufficiency of which are hereby acknowledged, Seller hereby gives and grants to Buyer the exclusive first right and option to purchase the Premises upon the terms and conditions set forth in this Agreement. The Option Price is being delivered to a qualified intermediary in order to preserve Seller's option to close this transfer as part of a tax deferred exchange as is noted and permitted below. This Option to Purchase shall be for a term commencing on the date of the execution hereof and shall continue for a period of One Hundred Twenty (120) days thereafter. The Option Price shall be retained by Seller and shall be refunded to Buyer only if Seller is unable to or otherwise fails to deliver title to the Premises to Buyer as required herein. If the above event should occur, then Buyer shall be entitled to an immediate refund of the _______________ Dollars ($_________) of the Option Price. 2. EXERCISE OF OPTION. Buyer's Option to Purchase the Premises may be exercised at any time during the term hereof, either by Buyer's delivery to Seller of a written notice of such exercise, or Buyer's depositing such written notice in the U.S. Mail, postage prepaid, addressed to Sellers at Sellers' above-stated mailing address, or such other address as Sellers may, from time to time, so direct by written notice to Buyer. If this option is not exercised within the term hereof, then Buyer's option shall thereupon terminate, and all rights, duties and obligations of the parties hereto shall cease, and Seller shall be entitled to obtain the Option Price from the Qualified Intermediary as full payment for the Option granted hereunder, unless this Option is otherwise extended in writing by the parties hereto, or Buyer shall become entitled to a refund of the Option Price as set forth in Paragraph 1 above. 3. PURCHASE PRICE. If Buyer exercises its option hereunder, the purchase price for the Premises shall be the sum of ____________
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