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Option to Purchase Property
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Option to Purchase Property
Option to Purchase agreement grants future right to buy property at agreed price before option expiry.
- Exclusive right to buy
- Fixed purchase price
- Time to secure financing.
OPTION TO PURCHASE PROPERTY AGREEMENT
Please note that this is not an Offer to Purchase (or Sale of Property Agreement).
Summary Where a person wants to obtain an option (or a future right) to buy immovable property, this Option to Purchase Agreement may be used. The potential purchaser can then elect to buy the property at any time before the option expires, at the agreed price.
Who should use an Option to Purchase Agreement? A property owner and an interested prospective purchaser can use an Option when agreeing that the prospective purchaser has an option to the purchase the property in the future.
Is this intended for use by a tenant obtaining an option to purchase the leased property? Then view our Option to Purchase Leased Property
What does the Option to Purchase Contract say? The template contract covers the following issues: introduction; option to purchase; purchase price and costs; general.
What does the Option Agreement look like? The standard document can be printed onto two pages.
What do you need to do to use the Option to Purchase?
- Read the document template to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details in the agreement.
- Ensure that the completed agreement is signed by both the parties.
What are the Uses and Benefits of having a well drafted Option to Purchase Contract:
An option to purchase property agreement is rent to own agreement and is a legal document that grants a potential purchaser the exclusive right to buy a property at an agreed-upon price within a specified time frame. This agreement is commonly used in commercial real estate transactions as a real estate option contract or real estate option agreement, where buyers need time to secure financing or complete due diligence before purchasing immovable property.
The option to purchase agreement (also known as an option contract, option agreement or a real estate option agreement) will typically include details such as the purchase price and payment of the purchase price, option fee, option period, any real estate investors details, condition of the rental property, Option to purchase the property, real estate agent involvement and real estate agent fees, if a real estate agent is used, and any other conditions or requirements the parties agree upon. It may also reference a purchase contract or purchase agreement, which will be executed if the option is exercised by the buyers.
The property owner/ seller grants the exclusive option/ purchase option to the potential purchaser for a significant amount of money, known as the option fee. During the lease option period, the potential purchaser may perform due diligence, obtain financing, approach an investor and determine the value of the property. If the potential purchaser decides to proceed with the purchase, they will pay the agreed-upon price to the property owner and complete the purchase contracts.
An option to purchase property agreement/ option contract is a legal and binding contract that should be completed in writing and signed by both parties. It is important for all parties involved to have a clear understanding of the terms and conditions outlined in the agreement before signing the lease or rental agreement with the option to purchase.
Overall, an option to purchase property agreement/ option agreement provides flexibility for the potential purchaser to evaluate the property and secure financing while granting the property owner the assurance of a committed buyer at a fixed price.
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