Sample Option to Purchase

This Option to Purchase Agreement (“Agreement”), effective from the date of signing, is between:

Seller: [YOUR NAME], located at [YOUR COMPANY ADDRESS].

Buyer: [BUYER NAME], located at [BUYER'S ADDRESS].

I. Introduction

The purpose of this Agreement is to set out conditions under which the Buyer holds an exclusive option to purchase the described property from the Seller.

II. Legal Description of Property

The Property, subject to this Option to Purchase Agreement, is located at [insert full address or legal description of the property]. It encompasses [describe the physical boundaries or features of the property, such as size, structure, land features, etc.].

Additionally, the property is legally identified by [mention any specific identifiers such as parcel numbers, lot numbers, or any other relevant legal descriptions].

III. Option Fee

The Buyer shall pay the Seller an option fee in the amount of [OPTION AMOUNT DOLLARS].
Such payment is non-refundable and will be credited towards the purchase price of the Property at the time of sale.
The Seller shall provide a receipt as proof of payment of the option fee.
If the Agreement is terminated due to a breach by the Seller, the option fee shall be refunded to the Buyer.
If the Buyer exercises his option to buy the Property, the option fee shall be part of the purchase price.

IV. Option Term

The option term commences on [START DATE] and terminates on [END DATE] (“Option Period”).
During this period, the Buyer possesses the exclusive right to purchase the Property.

V. Exercise of Option

The Buyer may exercise the option by providing written notice to the Seller.
Within the said notice, the Buyer must include their intention to purchase the Property before the termination of the Option Period.

VI. Purchase Price

The Purchase Price for the Property, if the option is exercised, is [$ PURCHASE PRICE] and shall be payable as agreed upon by both Parties.
Property Inspection
The Buyer has the right to inspect the Property during the Option Period.
The inspection must be done by a licensed and insured inspection service.
The purpose of the inspection is to ascertain the physical condition of the Property.
Any defects discovered during the inspection shall be repaired by the Seller before the sale of the Property.
Failure to repair defects may result in the termination of this Agreement.

VII. Legal and Binding Agreement

This Agreement is legal and binding within the jurisdiction it is executed.
The Parties each represent they have the capacity to enter into this Agreement.

VIII. Entire Agreement

This Agreement constitutes the entire agreement between the Parties and supersedes all prior oral or written agreements, understandings, or arrangements.

Signature: Agreement Acknowledgment

The Parties below have read and understood the terms of this Option to Purchase Agreement and signify their agreement by their signatures below on the dates provided:

[YOUR NAME]

Seller

[DATE]

[BUYER NAME]

Buyer

[DATE]

Notary Section

State of [State], County of [County]

On this [Date], before me, [Notary Public Name], a Notary Public in and for said County and State, personally appeared:

- [Your Name], known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he executed the same for the purposes therein contained.

- [Buyer Name], known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he executed the same for the purposes therein contained.

Witness my hand and official seal:

My Commission Expires: [Date]

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