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.