Pure Option Forms - Posted by John

Posted by John on September 01, 2005 at 11:01:28:

It is a simple Pure Option form that says I have the Option to purchase their house between now and 10/31 for a set amount, and that it is assignable.

Pure Option Forms - Posted by John

Posted by John on September 01, 2005 at 01:37:17:

I just want to make sure I have this right. I had a seller give me the option to purchase their house. We all signed the Pure Option form. Now, when I find a buyer, I just get them, myself and the original seller to sign the Assignment of Agreement form. I then just take those 2 forms in to a title company? So there is no purchase and sale agreement at all?


Re: Pure Option Forms - Posted by Brent_IL

Posted by Brent_IL on September 01, 2005 at 18:40:34:

This is one opinion.

You can?t address everything that could possibly come up or be alleged by a party within the words of a contract, but, I believe that the more comprehensively the details, rights, and remedies are spelled out in black and white, the less opportunity there is for confusion and litigiousness by the parties later. Sort of like a series of IF-THEN-ELSE statements, the end result is determined by an action.

I don?t know what kind of option contract you have, so this is just general advice. Consider having your option agreement refer to a specific, conditionally-executed (subject to exercise of the option), purchase contract that elaborates upon the terms under which acquisition is made and places limits on what the seller is allow to do during the term of the option. An express agreement won?t stop sellers from doing what they want to do, but the agreement can establish a way to offset the sellers actions in the final settlement, so you don?t get stuck paying for them.

As a quick example, exercising at your strike price won?t do you much good if some liens get attached during the term of your option. If the liens were subtracted from the strike price, you still might find it profitable to exercise.

I?ve tried minimalist contracts (rental; not purchase), but when contested, I didn?t do so well, so I’ve opted for more comprehensive ones. Maybe, you?ll do better.

Re: Pure Option Forms - Posted by Clint

Posted by Clint on September 01, 2005 at 07:04:35:

Slow down there, cowboy. Saddle up first. What does your Pure Option form contain. Is it in conjuction with a buy offer and purchase agreement? Too litte info, other than to say yes or no to.