Sample Option Clause For Lease Option Agreement

ADVERTISEMENT

SAMPLE OPTION CLAUSE FOR LEASE OPTION AGREEMENT
OPTION.
An option to purchase (“Option”) is granted on the Premises by
______________ (“Seller”), to _________ (“Buyer”). Seller, intending to bind
Seller, Seller’s heirs, successors and assigns, grants to Buyer the exclusive right
and option to purchase all of that certain parcel of land, together with all
improvements located thereon (collectively, the “Property”), more particularly
described as follows:
Street Address: _________________________________________, the
legal description of which is:
LEGAL DESCRIPTION
on the terms and conditions set forth below:
A. Option Period: This Option shall exist and continue from the date hereof until
12:00 o’clock a.m. (midnight) on __________ (“Option Period”). TIME IS OF
THE ESSENCE WITH RESPECT TO THE OPTION PERIOD AND EXERCISE.
B. Exercise: At any time during the Option Period, Buyer may exercise this
Option by giving Seller a written notice thereof signed by the Buyer, which shall
include an executed Purchase and Sale Agreement in the form attached to this
Agreement as Exhibit C, which exercise is effective upon (a) hand delivery or (b)
prepaid deposit of the notice with an overnight commercial delivery service or in
certified mail, return receipt requested, at the following address of the Seller:
________________________________________________________.
C. Contract Upon Exercise: Upon exercise of this Option, the terms of
purchase and sale shall be as set forth in Purchase and Sale Agreement, which
is attached as Exhibit C and incorporated herein by reference.
D. Application of Option Money: If this Option is exercised, the Option Money
shall be applied to the purchase price at Closing. If this Option is not exercised,
the Option Money shall be retained by Seller.
E. Application of Rental Payments: If this Option is exercised, a portion of the
rental payments shall be applied to the purchase price at Closing. If this Option is
not exercised, all of the rental payments shall be retained by Seller. The rental
payments shall be applied to the purchase price, as follows:

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Business
Go
Page of 2