I’m putting one of my favorite forms, that has made me good money over the years, up for members to use. This is a buyer favorable option that I, and good friend of mine, Ted put together about 10 years ago. Over the years we have updated it. I use it as an investor when I find a seller who is a “don’t-wanter,” and I don’t really know now I could use the property or who I could resell it to. So instead of walking away I spend 20 minuets and option the property for part of the profits. Then I can send it out to my list to see if someone wants it, and list it for sale. This is a way to control the property without risk and cost of ownership. My goal these days is to control real estate and not to have the cost of property taxes, payments, and insurance cost. When you have a person whose #1 objective is get rid of property this works great. What I see with most investors is they are afraid to ask for the option. This is also a great tool for controlling property around a development area or growth area. Check it out. I have more great products like this on my site http://MrLeaseOption.com These days, in our sue happy world, you need to give a disclaimer. So here is mine: I am not an attorney, or CPA. Real Estate is risky by it nature. So if you are going to use the attached form, have it reviewed by an attorney in your area.
OPTION TO PURCHASE
On this 19th day of December , 2006.
Seller’s Name whose address is Seller’s Address hereinafter Optionor, and Your Name/LLC Name . whose address is: Your Address hereinafter Optinee enter into this Option to Purchase agreement regarding property located in the City of: City Name County of: and State of Michigan described as:
Legal Address
Sidwell No Commonly known as: Property Address
The Optionor and Optionee agree as follows: (Unchecked items do not apply)
<!--[if !supportLists]-->1. <!--[endif]-->GRANT OF THE OPTION. In full consideration of the option fee paid by the Optionee to the Optionor, the Optionor grants the Optionee an exclusive option to purchase the real property described above.
<!--[if !supportLists]-->2. <!--[endif]-->PAYMENT OF THE CONSIDERATION. Check the clause that applies:
r Payment in full of the Option consideration in the amount of $ 5.00 upon execution of this agreement, receipt of which the Optionor hereby acknowledges. The consideration is not refundable to Optionee in whole or part other than in the case of Optionor’s failure to perform under this agreement or the sale contemplated in the attached Buy and Sell Agreement.
c Payment of $_____________________ upon execution of this agreement and the remaining balance of $_____________________ to be paid in c Weekly cBI-Monthly cMonthly payments of $____________________ each, due on the ________________ day of each and every c week c second week c month to Optionor at the address shown above or at any other place Optionor directs,
for a total Option consideration of $_________________________________. The consideration is not refundable to Optionee under any circumstances, in whole or part other than in the case of Optionor’s failure to perform under this agreement or the sale contemplated in the attached Buy and Sell Agreement.
<!--[if !supportLists]-->3. <!--[endif]-->TERM OF THE OPTION. This option is effective as of Date and, if not sooner exercised shall expire on Midnight, Time needed to get the deal done for a total term of term time (ie 90 days)
<!--[if !supportLists]-->4. <!--[endif]-->RENEWAL. Check the clause that applies
<!--[if !supportLists]-->c <!--[endif]-->The Optionee may extend the term of this Option for an additional ___time period_____________________________________ by paying to Optionor the sum of $___amount___________________ as well as providing a letter containing Optionee’s intent to exercise this clause and renew this option. It is sufficient if the payment and letter are mailed by regular first class mail to Optionor and postmarked no later than the date and time of expiration of this agreement. If Optionee renews this Agreement, all terms and conditions shall remain unchanged and in full force and effect during the renewal period.
c This option is not renewable without the prior written consent of the Optionor.
PAGE 1 of 2 OPTION TO PURCHASE BF 1.7.05
<!--[if !supportLists]-->5. <!--[endif]-->PURCHASE PRICE AND TERMS. The purchase price and terms of the sale are contained in a Buy and Sell Agreement attached hereto which has been initialed at the top of each page by the Optionee and signed by the Optionor. The consideration for this option shall be credited to the purchase price for the premises at the closing when the Optionee exercises the option.
<!--[if !supportLists]-->6. <!--[endif]-->EXERCISE OF THE OPTION. The Optionee may exercise this option by giving written notice signed by the Optionee to the Optionor at its address stated above by regular first class mail.
<!--[if !supportLists]-->7. <!--[endif]-->INTENTION OF OPTIONEE. The Optionor understands and agrees that the Optionee intends to market the property described herein at a higher price than agreed to in this transaction. The Optionor agrees to cooperate fully with the Optionee with marketing and showing of the property, including, but not limited to access for showings, placement of “for sale” signs, etc. Further the Optionor agrees and hereby authorizes the listing of this property subject to exercise of this option and list it with a Realtor and offer it for sale through the Multiple Listing Service. Optionor agrees to execute any additional documents which may be required to enable the Optionee in the marketing of this property.
<!--[if !supportLists]-->8. <!--[endif]-->FAILURE TO EXERCISE THE OPTION. If the Optionee fails to exercise this option before the Option term expires, this option shall terminate and the Optionor shall retain any consideration paid in full and shall have no further obligation to the Optionee.
<!--[if !supportLists]-->9. <!--[endif]-->OPTIONOR’S DEFAULT. In the event that the Optionor shall default or fail to complete any of the terms of this Agreement or the sale which is the subject of the attached Buy and Sell Agreement after Optionee’s exercise of the option to purchase, Optionee may, at Optionee’s sole discretion elect to enforce the terms of this Agreement and any related documents or demand and be entitled to a refund of any option consideration paid.
<!--[if !supportLists]-->10. <!--[endif]-->TRANSFER BY OPTIONOR PRIOR TO COMPLETION OF OPTION. In the event the Optionor shall transfer or convey any or all of his/her/it’s rights, title and interest to the property, or if a sale, transfer or conveyance is forced through legal actions, subject to this agreement prior to the expiration of the option term, or any renewal or extension thereof, such sale, transfer or conveyance shall be subject to the rights of the Optionee and the conditions of the Agreement and any attachments hereto.
<!--[if !supportLists]-->11. <!--[endif]-->ASSIGNMENT BY OPTIONEE. Nothing in this Option to Purchase Agreement shall be construed to prevent Optionee from assigning the Optionee’s rights under this Agreement and any related documents.
<!--[if !supportLists]-->12. <!--[endif]-->BINDING EFFECT. This agreement shall bind and benefit the parties' heirs, successors and assigns.
<!--[if !supportLists]-->13. <!--[endif]-->CONSTRUCTION. This agreement shall be construed and governed by the laws of the State of Michigan.
<!--[if !supportLists]-->14. <!--[endif]-->ENTIRE AGREEMENT. This agreement contains the entire agreement of the parties with respect to the transaction described in this agreement, and this agreement may not be amended or released, in whole or in part, except by a document signed by the parties.
<!--[if !supportLists]-->15. <!--[endif]-->SEVERABILITY. Every portion of this agreement is severable. If any provision, or portion thereof, of this Agreement or it’s application, or any circumstance be invalid or unenforceable to any extent, the remainder of the Agreement and the interpretation and application of the remaining provisions shall not be affected hereby, and the Agreement shall be enforced to the greatest extent allowed by law.
<!--[if !supportLists]-->16. <!--[endif]-->PARAGRAPH HEADINGS, WORDS OF NUMBER OR GENDER, LINES AND BOLD PRINT. The subject headings of the paragraphs, lines, capitalization, bold print of this Agreement are inserted for convenience and reference only and are in no way intended to describe, interpret, define, limit, amplify or aid in the meaning, construction or interpretation of any of the provisions of this agreement. As used herein, the singular number shall include the plural and the plural the singular.
<!--[if !supportLists]-->17. <!--[endif]-->A deed to the property will be held in escrow by the Optionee until he exercises his option.
ALL PARTIES ARE ADVISED TO SEEK THE COUNSEL OF AN ATTORNEY TO PROTECT THEIR INTERESTS IN THIS TRANSACTION
Duly executed on the date first above written.
Witness: Signed:
Witness: Optionor Seller
Witness: Optionor: Seller
Optionee: Your Name/LLC Name
State of MICHIGAN )
) ss.
County of )
On this day of , 2006 before me appeared persons known to me to be: . who executed the foregoing Memorandum of Buy and Sell Agreement.
______________________________________________________
______________________________________________________
Notary Public, County, Michigan
My commission expires:
PAGE 2 of 2 OPTION TO PURCHASE BF 1.7.05
Drafted by: ` When recorded please return to:
Business address: Business Address:
Respectfully Submitted,
Ralph Mark Maupin
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