OPTION TO PURCHASE REAL ESTATE AGREEMENT

State of: _____________________

COUNTY OF _______________
THIS AGREEMENT is made and entered into this ___ day of _______________, 20___ by and between
___________________________________________________________ and all titleholders to the property (hereinafter referred to as
"Optionor"), and ____________________________. (hereinafter referred to as "Optionee").
WITNESSETH THAT, under the mutual promises and covenants hereinafter set forth, the parties hereto agree as follows:
1.
CONSIDERATION:
In consideration for the granting of this Option, the payment of ________________________
Dollars ($___________) concurrent with the inception of this Option Agreement (the "Option Consideration), and other good and
valuable consideration in hand paid to Optionor, the receipt and sufficiency whereof are hereby acknowledged by Optionor, Optionor
hereby grants and conveys unto Optionee an exclusive Option to purchase property herein described.
2.
PROPERTY: That certain real property with such improvements as are located thereon, and is described as follows:
All that tract of land lying and being in Land Lot ______ of the _____ District, _______ Section of ___________ County, State of
__________________________, and being commonly known as
Address: ______________________________
City: _________________________, State: _____________ Zip: ____________ according to the present system of numbering in
and around this area, and being more particularly described as Lot _______, Block _________, Unit ________, Phase/Section ______
of ___________________________________________ Subdivision, as recorded in Plat Book ______, Page _______,
______________ County, ________________ (State) records together with all light fixtures, electrical, mechanical, plumbing, airconditioning, and any other systems or fixtures as are attached thereto; all plants, trees, and shrubbery now a part thereof, together
with all the improvements thereon; and all appurtenances thereto, all being hereinafter collectively referred to as the "Property." The
full legal description of Property is as follows:
(Legal Description Exhibit A Attached )
3.
TERM:
The term of the Option shall be for a period of _______________ months, commencing on the _____ day of
__________________, 20_____, and expiring on the ______ day of ____________________, 20_____.
4.
EXTENSION OF OPTION PERIOD: Optionee shall have the further option, on or before the _______ day of
_________________, 20___, to extend the option period for an additional period of _______ months, to the _______ day of
_________________, 20___, upon giving notice of the extension of the option period to Optionor prior to the _______ day of
_________________, 20___, and tendering to Optionor additional consideration in the amount of $ __________________.
5.
PURCHASE PRICE AND METHOD OF PAYMENT: The purchase price of the Property shall be:
_________________________________________________________________________ Dollars, (U.S.) $____________________
until the exercising of this Option, to be paid in cash or its equivalent, less the Option Consideration contained herein. Unless
otherwise stated herein, Optionor shall pay closing costs as per the executed Standard Real Estate Purchase and Sale Agreement.
6.
EXERCISING OPTION: Option shall be exercised no later than the expiration date of this Option Agreement (including any
extensions). The exercise of Option shall be evidenced by delivery of a ONE day written, or telephone Notice of Intent to Exercise
Option, fully executed by Optionee, and delivered to Optionor within the prescribed exercise period. In the event of the exercise of
Option, it is understood and agreed that if any rent payments are received by owner during the term of this option, _____%, or
_________________ Dollars of said rent payments shall be applied against the purchase price.
7.
MAINTENANCE AND REPAIRS: Optionee acknowledges that the premises are in acceptable order and repair, unless
otherwise indicated herein. Unless otherwise agreed, Optionor shall, at his own expense, and at all times, maintain the premises in a
clean and sanitary manner, including all equipment and appliances therein and shall surrender the same, at the exercising of this
Agreement, in good condition, normal wear and tear excepted. Should Optionor fail to maintain and repair Property in accordance
with this provision, Optionee shall have the option to make said repairs and be credited for the costs of such repairs under the
provisions of Paragraph 15.
8.
ADDITIONAL INDEBTEDNESS/LIENS: As part of the Option Consideration paid to Optionor, Optionor agrees not to
allow any additional indebtedness, financing, refinancing or debt, judgments or liens, other than current year taxes, to become liens
against the Property.
1 of 4
Initials: _____________________________

9.
PURCHASE AND SALE AGREEMENT: In the event of the exercise of this Option by Optionee, Optionor binds himself to
enter into a "Purchase and Sale Agreement", attached hereto as Exhibit "B" and made part a hereof by reference, with Optionee. In the
absence of a Purchase and Sale Agreement, the closing agent may use this Option Agreement as the contract to close on.
10. SPECIFIC PERFORMANCE: Optionor herewith certifies and warrants that he/she is vested with full powers and authority to
enter into this Agreement. At the execution of this Agreement, Optionor agrees to execute and place into escrow all necessary
documentation in order to convey title upon the Optionee's exercising this Agreement. In addition to the remedies specified herein,
Optionee may, in the event of default by Optionor, enforce this agreement through an action for specific performance with the attorney
fees and costs of said action being paid by Optionor.
11.
TITLE: Within Five days after the notice of intent to exercise Option has been received by Optionor, Optionor will deliver to
Optionee's closing attorney a title insurance commitment for an owner's title insurance policy showing that Optionor is delivering
good, clear, and marketable title. Any expense of curing any title flaws, including but not limited to legal fees, discharge of liens and
recording fees will be paid by Optionor.
12. METHOD OF GIVING NOTICE: If this option is to be extended or exercised by Optionee, Optionee shall give written notice
either in person or mailed by certified mail, return receipt requested, to Optionor at:
,

Address: _____________________________________________________________________________________ City: ____________________________________ State:

_____ Zip: ____________

or such other place as Optionor may from time to time identify by mailing notice of same via certified mail to Optionee.
13. AGREEMENT BINDING: This Agreement shall be binding upon the parties hereto and their respective heirs, administrators,
successors, and assigns. Should Optionor wish to transfer, assign or sell this Option or the Property on terms other than as herein
agreed, then Optionee shall have "first right of refusal" to purchase based on a bona fide written offer to purchase the Option or the
Property made to Optionor by any third party.
14. NOTICE OF OPTION: Optionor hereby agrees to execute a Notice of Option in favor of Optionee. This Notice shall serve as
a notification to the public that the Optionee has the right to purchase the Property upon the terms and conditions agreed upon between
the parties on this date.
15. OPTIONOR'S DELINQUENCY: Should Optionor be delinquent on any payment due under any note and mortgage or deed
to secure debt, or trust deed or should Optionor cause a notice of foreclosure to be filed, then Optionee may, at Optionee's discretion,
cure such default. In such case Optionee shall receive two dollars credit towards the purchase price for every dollar expended to cure
default. Optionor hereby agrees and affirms that Optionor will execute a note and deed to secure debt for the amounts paid under such
default should Optionee cure any such default under this provision. Should Optionee default or allow Option to expire, all sums
expended by Optionee, under this default cure provision, shall be promptly repaid in full, in cash, to Optionee by Optionor, or the lien
shall remain against the Property.
16. INSURANCE: During the term of this Option, Optionor shall maintain insurance on the Property against physical damage,
casualty etc., for an amount to be determined by Optionor's insurance carrier as the replacement value of the Property plus additional
amounts as indicated by property value increases. Optionee shall immediately be named as an "Additional Insured" on said insurance
policy, or any subsequent policies entered into during the term of this Agreement.
17. TAXES:
Optionor shall timely pay all city and county taxes, and any other assessments, or association fees or other fees,
which may become due during the term of this Option Agreement. Should Optionor fail to pay said taxes, assessments or fees in
accordance with this provision, Optionee shall have the option to pay said taxes, assessments or fees and be credited under the
provisions of Paragraph 15.
18. GOVERNING LAW: This agreement, and all transactions contemplated hereby, shall be governed by, construed and enforced
in accordance with the laws of the State of ____________________________. The parties herein waive trial by jury and agree to
submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in ______________ County, State of
________________________. In the event that litigation results from or arises out of this Agreement or the performance thereof, the
parties agree to reimburse the prevailing party's reasonable attorney's fees, court costs, and all other expenses, whether or not declared
by the court as costs, in addition to any other relief to which the prevailing party may be entitled. In such event, no action shall be
entertained by said court or any court of competent jurisdiction if filed more than one year subsequent to the date the cause(s) of
action actually accrued regardless of whether damages were otherwise as of said time calculable.
19.

TIME: Time is of the essence of this Option Agreement.

20. SEVERABILITY: In the event any part of this Option Agreement be construed as unenforceable, the remaining parts of this
Agreement shall remain in full force and effect as though the unenforceable part or parts were not written into this Option Agreement.
2 of 4
Initials: _____________________________

21. GENDER: All references to Optionor or Optionee herein employed shall be construed to include the plural as well as the
singular, and the masculine shall include the feminine and neuter where the context of this Agreement may require.
22. ENTIRE AGREEMENT: This Agreement and any attached addendum constitutes the sole and entire Agreement between the
parties and no representation, promise, or inducement not included in this Agreement, oral or written, shall be binding upon any party
hereto.
23.

SPECIAL STIPULATIONS:

The following stipulations shall control in the event of conflict with any of the foregoing:

A.
Subject to approval of Optionees partner(s)
B.
Optionor shall pay transfer tax due on agreed upon Option Purchase Price when sold. Optionee shall pay transfer
tax on any amount over and above the Agreed Upon Option Purchase Price that the Option is sold for.
C.
If Optionor wishes to end this Option prior to the expiration date, Optionor agrees to pay Optionee for all advertising
costs
associated with the marketing of said Optioned property, plus a $10,000.00 cancellation fee.

__________________________________________________(Seal)
Optionor: (Print or type Name) ____________________________________
__________________________________________________(Seal)

__________________________________________________(Seal)

Optionor: (Print or type Name) ____________________________________

Optionee: (Print or type Name)

By:

Address: _________________________________________

Address: ________________

_________________________________________________

Address line 2: _____________________

State of ______________________
COUNTY OF ___________________
On this, the _____________day of ____________________, 20__, before me, a Notary Public,
personally
appeared
_________________________
and
_________________________
and
_________________________ known to me (or satisfactorily proven) to be the person whose name is subscribed to
the within instrument, and acknowledged that he/she executed the same for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.

________________________________________________________
Notary Public

(SEAL)

3 of 4
Initials: _____________________________