An Option to Purchase Agreement is between a seller of property and a buyer, whereby
the seller gives an option to the buyer to buy the property at a future time at a specific
price. This document contains standard clauses commonly used in these types of
agreements; however, additional language may be added allowing for customization to
ensure the specific terms of the parties' agreement are addressed. Use this agreement
to grant an option to allow a buyer to purchase property at a specific date and at a
OPTION TO PURCHASE AGREEMENT
This Option to Purchase Property (the “Option”) is made and effective as on
_________________ (“Effective Date”) by and between ___________________ (the "Seller"),
and ___________________ (the "Buyer");
A. Seller owns certain real property described on Exhibit A hereto (the Property”).
B. Buyer desires to obtain an option to purchase the Property from Seller and Seller is willing to
grant such an option to Buyer.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereby agree as follows:
1. GRANT OF OPTION TO PURCHASE
The Seller grants to the Buyer, on the terms of this Option, an option to purchase the Property at
the Purchase Price.
The option is granted by the Seller to the Buyer in consideration of payment of the Option Fee.
Upon payment, the Option Fee shall immediately become the property of the Seller.
This Option is simply purchased by the Buyer and the Buyer is not required to purchase the
property. The Seller will hold ownership of the property for the Option Period. In the event this
Option is exercised, all consideration paid for the Option shall be applied against the Purchase
Price. In the event that Buyer does not exercise the Option, the consideration paid to Buyer for
the Option may be retained by Seller without deduction or offset. If the Buyer does not exercise
the Option and the Option expires, the Seller is under no further obligation to the Buyer.
2. OPTION FEE
The Option Fee for the Property, which the Buyer agrees to pay and the Seller agrees to accept,
shall be the sum of $....................................
The Option Fee is not refundable upon exercise of the Option.
3. PURCHASE PRICE
The Purchase Price for the Property is $..........................
4. OPTION PERIOD
The Option may be exercised at any time from the making of this agreement until 5 pm on the
............. day of .............................. (the “Option Period”)
5. EXERCISE OF THE OPTION
In order to exercise the Option, the Buyer must make all payments due up to the date of exercise
under the Option. This includes but is not limited to:
5.1 Payment of the Option Fee. All outstanding payments for the Option Fee must be paid in full
prior to exercising the Option. The Option is irrevocable provided the Option Fee has been
paid in full. The Option is not deemed to have been exercised until such time as the Buyer
gives Notice of Intent to Purchase to the Seller during the Option Period.
5.2 Notice of Intent to Purchase will not be deemed to be given unless it is:
(a) On the form specified in Schedule 1; and
(b) Signed by the Buyer and
(c) Delivered to the Seller at the address specified in this Option to Purchase.
6. EFFECT OF EXERCISE OF THE OPTION
Upon the Seller receiving Notice of Intent to Purchase, the Seller will be bound to sell and the
Buyer bound to purchase the property for the Purchase Price and on the terms of the Contract of
Upon exercise, the Seller shall be bound by the Contract of Sale as Seller and the Buyer shall be
bound by the Contract of Sale as Buyer.
The date of the Contract of Sale shall be the date upon which the Option is validly exercised in
accordance with this agreement.