This option for the purchase contract is concluded between the following parties:________________________________and_________________________________________ The owner hereby grants the buyer the opportunity to purchase the following property:Postal address:___________________________________________________________________________Property Description: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________The purchase price of the property is $___ In exchange for this purchase option, the buyer pays the owner a non-refundable fee of $_ Fees credited to the purchase price at conclusion. If the buyer does not use this option, these fees will be retained by the owner. The term of this option begins at ____ AM/PM on __ and ends at _______ AM/PM on ___ and ends on _ The agreement describes the terms, such as the sale price and all contingencies prior to the closing date. It is recommended that the seller require the buyer to make a serious cash deposit between 1% and 3% of the sale price, which is not refundable if the buyer terminates the contract. The most common contingency is that the buyer receives financing from a local financial institution. The process begins with an offer to purchase from a buyer. The agreement usually includes a price as well as conditions of sale and the seller can choose to refuse or accept. If accepted, a transaction will take place where the money will be exchanged and a deed will be presented to the buyer. The sale is completed when the deed is submitted to the registry office under the name of the buyer. When you buy a property, a purchase option gives you the right to purchase the property within a set time frame for prior agreement. Take a closer look and you will find that the option to buy forms are actually unilateral agreements that favor the buyer.

The reason for this is simple: the buyer has the right to buy the property, but he is not obliged to make the purchase. On the other hand, the seller must hand over the property to the buyer if the option is exercised. Of course, there is no free lunch in real estate – the buyer must pay the seller an option fee to enjoy this nice advantage. In geek legal jargon, we call this “consideration.” For your real estate option contract to be legally binding, it must contain certain important ingredients: purchase price, expiration date and consideration (option fee). In principle, a call option is transferable unless prohibited in writing. Clearly, this means that a buyer can transfer or sell the right to buy to another person. The sample form for the call option that we have below is a pure option agreement. If you want a real estate option agreement that allows you to rent the property as well, click here for our rental agreement. Lead Paint Disclosure – A federal law that requires the owner of a property built before 1978 to determine whether peeling, peeling or deteriorated paint has appeared on the site. Since paint particles are dangerous to a person`s health, this is a mandatory disclosure that must be attached to every purchase contract.

The first article, “I. The Contracting Parties shall make the declaration initiating this Agreement. The wording is designed to determine the intent of both parties, so it needs certain situation-specific information that can be recorded. Start by specifying the month, two-digit calendar day, and two-digit calendar year when these documents take effect by using the first two empty lines of the first statement. We will now turn our attention to the different parties who enter into this agreement: the seller and the buyer. The second statement contains four spaces that must be used to identify the buyer. Specify the display name of the entity that wants to acquire the seller`s property in the empty field associated with the Buyer Parentheses label. The following three empty fields have been inserted so that we can record the postal address of, the city of and the status of the reported buyer. The seller must also be defined in this part of the agreement. Be sure to enter the owner`s full name in the empty field labeled “Seller.” Again, we need to provide additional information. Use the following three fields to enter the mailing address, city, and state of the business that sells the residential property in question. In the next article “II.

Legal description”, we will focus on the residential property that is sold to the buyer. First of all, we need to define what type of property it is. For this purpose, a list of checkbox items has been inserted. Select the check box that best defines the property for sale. You can check the box “Detached house”, “Condominium”, “Development of planned units (PUD)”, “Duplex”, “Triplex”, “Fourplex” or “Other”. Note that if you select the Other field as the description for this property, you must specify the definition in the blank row associated with this selection. The next section of this article should provide a space titled “Street and House Number.” Specify the exact physical location of the residential property in question for this line. This should include the building number of the accommodation, street/street/road/etc. Name, if applicable unit number, neighborhood/city/county, state and zip code where the property in question can be physically viewed and accessed. We will continue this report by specifying its “Information on Tax Parcels” in the next available empty line. This information can be called “Parcel ID” or “Tax Card and Lot Number” depending on the county in which it is located. If this information is not available, contact the Registrar/Registrar of Records in the county where the property is located to obtain it.

Any “other description” associated with the premises for sale must be indicated up to the last empty line of this section. Article “III. ” Personal Property” allows both parties to define any personal property (i.e. air conditioning) that will be included in the previous section when purchasing the official description of the property. Enter any type of personal property that will be sold with the residential property in the empty lines of this section. If an agreement is reached, the seller must complete and submit disclosure forms to the buyer. These forms inform the seller of any problems or repairs required in the house, as well as the presence of hazardous substances on the property. PURCHASE PRICE: The purchase price of the property is ($). The purchase price after application of the option money must be paid by urchaser in cash to the seller. Completion must be completed within fifteen (15) days of delivery by Seller of a certificate of ownership acceptable to Buyer in accordance with paragraph IV. TITLE: Within fifteen (15) days of buyer exercising this option as set forth above, Seller must provide Buyer or its attorney with a certificate of ownership from a reputable attorney on which certificate title insurance can be purchased covering the property described in paragraph I above, reflecting that the negotiable costs of simple ownership of the property in question belong to seller and that it belongs to Seller from a property described in paragraph I above. The title company is insurable at the choice of the buyer.

This certificate is subject only to current year`s taxes, easements and registration fees, and previous mineral reserves. .