Option Agreement for Purchase of Real Property

10/20/2013

THIS OPTION AGREEMENT ("Agreement") made and entered into this
_(1)_ day of ____(2)_____, 20_(3)_, by and between
_______(4)______, whose principal address is
_______(5)_________, hereinafter referred to as "Seller" and
________(6)_______, whose principal address is
_______(7)________, hereinafter referred to as "Purchaser":

W I T N E S S E T H:

WHEREAS, Seller is the fee simple owner of certain real
property being, lying and situated in the County of
___(8)____, State of ______(9)_______, such real property
having the street address of ___________(10)_____________
("Premises") and such property being more particularly
described as follows:

(Insert Legal Description)

and,

WHEREAS, Purchaser desires to procure an option to purchase
the Premises upon the terms and provisions as hereinafter set
forth;

NOW, THEREFORE, for good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged by the
parties hereto and for the mutual covenants contained herein,
Seller and Purchaser hereby agree as follows:

1. DEFINITIONS. For the purposes of this Agreement, the
following terms shall have the following meanings:

(a)  "Execution Date" shall mean the day upon which the last
party to this Agreement shall duly execute this Agreement;

(b)  "Option Fee" shall mean the total sum of a down payment
of _(11)_ percent (___%) of the total purchase price of the
Premises plus all closing costs, payable as set forth below;

(c)  "Option Term" shall mean that period of time commencing
on the Execution Date and ending on or before
_______(12)_____, 20_(13)_;

(d)  "Option Exercise Date" shall mean that date, within the
Option Term, upon which the Purchaser shall send its written
notice to Seller exercising its Option to Purchase;

(e)  "Closing Date" shall mean the last day of the closing
term or such other date during the closing term selected by
Purchaser.

2. GRANT OF OPTION. For and in consideration of the Option Fee
payable to Seller as set forth herein, Seller does hereby
grant to Purchaser the exclusive right and Option ("Option")
to purchase the premises upon the terms and conditions as set
forth herein.

3. PAYMENT OF OPTION FEE. Purchaser agrees to pay the Seller a
down payment of _(14)_ percent (____%) of the total purchase
price of the Premises plus all closing costs upon the
Execution Date.

4. EXERCISE OF OPTION. Purchaser may exercise its exclusive
right to purchase the Premises pursuant to the Option, at any
time during the Option Term, by giving written notice thereof
to Seller.  As provided for above, the date of sending of said
notice shall be the Option Exercise Date. In the event the
Purchaser does not exercise its exclusive right to purchase
the Premises granted by the Option during the Option Term,
Seller shall be entitled to retain the Option Fee, and this
agreement shall become absolutely null and void and neither
party hereto shall have any other liability, obligation or
duty hereinunder or pursuant to this Agreement.

5. CONTRACT FOR PURCHASE & SALE OF REAL PROPERTY. In the event
that the Purchaser exercises its exclusive Option as provided
for in the preceding paragraph, Seller agrees to sell and
Purchaser agrees to buy the Premises and both parties agree to
execute a contract for such purchase and sale of the Premises
in accordance with the following terms and conditions:

(a)  Purchase Price. The purchase price for the Premises shall
be the sum of ______(15)_______ ($__________); however,
Purchaser shall receive a credit toward such purchase price in
the amount of the Option Fee thus, Purchaser shall pay to
Seller at closing the sum of _______(16)_____ ($___________);

(b)  Closing Date. The closing date shall be on
_______(17)______, 20_(18)_ or at any other date during the
Option Term as may be selected by Purchaser;

(c)  Closing Costs. Purchaser's and Seller's costs of closing
the Contract shall be borne by Purchase and shall be prepaid
as a portion of the Option Fee;

(d)  Default by Purchaser; Remedies of Seller. In the event
Purchaser, after exercise of the Option, fails to proceed with
the closing of the purchase of the Premises pursuant to the
terms and provisions as contained herein and/or under the
Contract, Seller shall be entitled to retain the Option Fee as
liquidated damages and shall have no further recourse against
Purchaser;

(e)  Default by Seller; Remedies of Purchaser. In the event
Seller fails to close the sale of the Premises pursuant to the
terms and provisions of this Agreement and/or under the
Contract, Purchaser shall be entitled to either sue for
specific performance of the real estate purchase and sale
contract or terminate such Contract and sue for money damages.

6. MISCELLANEOUS.

(a)  Execution by Both Parties. This Agreement shall not
become effective and binding until fully executed by both
Purchaser and Seller.

(b)  Notice. All notices, demands and/or consents provided for
in this Agreement shall be in writing and shall be delivered
to the parties hereto by hand or by United States Mail with
postage pre-paid. Such notices shall be deemed to have been
served on the date mailed, postage pre-paid. All such notices
and communications shall be addressed to the Seller at
__________(19)_________ and to Purchaser at
________(20)________ or at such other address as either may
specify to the other in writing.

(c)  Fee Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of
______(21)_____.

(d)  Successors and Assigns. This Agreement shall apply to,
inure to the benefit of and be binding upon and enforceable
against the parties hereto and their respective heirs,
successors, and or assigns, to the extent as if specified at
length throughout this Agreement.

(e)  Time. Time is of the essence of this Agreement.

(f)  Headings. The headings inserted at the beginning of each
paragraph and/or subparagraph are for convenience of reference
only and shall not limit or otherwise affect or be used in the
construction of any terms or provisions hereof.

(g)  Cost of this Agreement. Any cost and/or fees incurred by
the Purchaser or Seller in executing this Agreement shall be
borne by the respective party incurring such cost and/or fee.

(h)  Entire Agreement. This Agreement contains all of the
terms, promises, covenants, conditions and representations
made or entered into by or between Seller and Purchaser and
supersedes all prior discussions and agreements whether
written or oral between Seller and Purchaser with respect to
the Option and all other matters contained herein and
constitutes the sole and entire agreement between Seller and
Purchaser with respect thereto. This Agreement may not be
modified or amended unless such amendment is set forth in
writing and executed by both Seller and Purchaser with the
formalities hereof.

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed under proper authority:

As to Purchaser this _(22)_ day of ______(23)_____, 20_(24)_.

Witnesses:                              "Purchaser"

___________(25)_____________  ____________(26)_____________

___________(25)_____________

As to Seller this _(27)_ day of ________(28)______, 10_(29)_.

Witnesses:                                  "Seller"
__________(25)______________  ____________(30)_____________

__________(25)______________

Notice

The information in this document is designed to provide an outline that you can follow when formulating business or personal plans. Due to the variances by many local, city, county and state laws, we recommend that you seek professional legal counseling before entering into any contract or agreement.

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