Our real estate option to purchase template allows you to reserve a property that you may want to buy while giving you the time to consider the details of the purchase. There are many benefits that this contract offers. The largest one is that a buyer does not have to rush to purchase a property as they will hold the exclusive rights to purchase until a set date.
What You Should Know Before Using Our Real Estate Option to Purchase Template
If you are looking to purchase property, an option to purchase a contract gives you the ability to have the exclusive right to buy the property for a pre-agreed value within a fixed time limit. Option to purchase contracts is buyer-friendly for multiple reasons.
First, the buyer is given the right to buy the property. However, they are not forced to make the purchase if they change their mind. Another benefit to the buyer is that as they have an allotted amount of time to make the purchase. This allows them to consider all options and not be forced to agree to terms or a price that they are uncomfortable with. Finally, the seller has to hand over the property to the buyer if the option is exercised.
While this document strategically benefits the buyer, it comes with fees. For this option to be legal, the buyer must pay the seller an option fee to enjoy the benefits. In formal terms, the fee a buyer pays is called "consideration".
For your real estate option contract to be legally binding, it must have three characteristics. The purchase price, expiry date, and consideration—the option fee. Typically, an option to purchase a contract is assignable, unless prohibited in writing. This means that a buyer is allowed to transfer or sell the right to purchase to another person. In the case of this event, the seller must honor the agreement.