Posted by Luke Hoppel on March 15, 2006 at 12:38:35:
I would pick up a book by Thomas Lucier about options. Just search Amazon.com for Thomas Lucier and buy his book on options.
It’s a great, very detailed, book. I highly recommend it.
Good Luck,
Luke
Real Estate Options Contracts - Posted by Naheem
Posted by Naheem on March 15, 2006 at 12:10:15:
Has ANYONE ever seen one of these, are they legal, and if so, how are they/where are they used? I keep hearing about them but, can someone PLEASE help me understand this.
Re: Real Estate Options Contracts - Posted by Joe Kaiser
Posted by Joe Kaiser on March 15, 2006 at 23:29:48:
You’d need a very good reason to use an option contract today.
Doing so has serious drawbacks and is often too much for the other
party to wrap their heads around.
Better to use a contingent purchase and sale agreement which
masquerades nicely as just such an animal. You can do all kinds of
things with one, and you don’t run into someone reacting to a weird
option agreement they’ve never seen before.
Joe
Re: Real Estate Options Contracts - Posted by Murphy
Posted by Murphy on March 15, 2006 at 12:55:27:
You must be new in the business. This contract is not new. I have used it for years. e-mail me off line and I will send you a copy.
Re: Real Estate Options Contracts - Posted by Randy (SD)
Posted by Randy (SD) on March 15, 2006 at 12:22:56:
Real estate option contracts are very common, yes they are legal, they can be used in any state in the country, most typical application (as the name implies) you want the option to purchase a certain piece of property at a designated price typically within a predetermined time frame.
Here is the text from a simple Option to Purchase Agreement:
Option to Purchase Agreement
This Option Agreement is made between _____________________________________, hereinafter referred to as the optionor and ____________________________________, hereinafter referred to as optionee.
The Optionor agrees to grant an option to purchase to the Optionee, the land and improvements known as
_____________________________________________________________________________________.
Upon agreement the option would begin _________________, 2006 and end __________________, 2006.
The purchase price will be _______________________________ ($) payable by certified funds as settlement.
Optionor grants optionee access to the above property for showing to prospective buyers, contractors, or appraisers. Optionor must maintain proper insurance on the before-mentioned property. If the optionee purchases the property, the optionor will pay all closing cost. Optionor grants this option for the consideration of ten dollars ($10.00) and other valuable consideration.
Date _____________________________
Optionor __________________________
Optionee __________________________