Property Purchase Option Agreement

The option agreement prevents the landowner from selling the property while the proponent reviews the viability of the project, thereby reducing the risk and potential costs to the developer. The land is only purchased when it is exercised by the buyer, which is based on a trigger event. In this case, an option agreement may be interesting, as it should ensure that the seller has reasons to advance a planning request and that the buyer has the flexibility to proceed at a specified price or not if the planning is granted. Optional phrases/clauses are included in the brackets. These must be carefully read and selected to be compatible. Unused options should be removed from the document. “I bought the document to update the legal precedent. Straight and easy to complete. He has the work with the vocabulary economy.┬áSection 3 defines the mechanism for exercising the option.

The standard conditions of commercial real estate (third edition) are included in the agreement. These conditions are often used in commercial real estate transactions (and are similar to the general terms of sale of intermediation). A copy of the standard conditions is available on the Oyez legal stationers website. Unfortunately, we are not able to provide the standard conditions. The option period can be between three months and three years, so good planning is essential. Among the most important considerations, the parties will generally reach an agreement through a negotiation course (either directly or through their representatives), which will then be recorded in the deed. A number of things are included, such as: The contract for the sale and purchase of land is attached to the deed and contains all relevant information and disclosure documents for the property. Article 7 deals with communications to be registered with the land registry on the registered title of the property. Option agreements and over-engineering agreements can be positive for both the landowner and the buyer, but there are potential pitfalls that require careful navigation.

If you need advice, please contact a member of our Commercial Property team. Option Agreements An option agreement is a set of terms and conditions between parties that contain a provision that allows a party (but not mandatory) to buy, sell or win a product at a certain price at a given time.

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