GENERAL FORM OPTION

TO PURCHASE REAL ESTATE

 

In consideration of _________________________ Dollars ($ ________________) paid to __________________________, of, __________________________, (address) hereinafter called seller, receipt of which is hereby acknowledged, seller hereby gives and grants to __________________________, of ___________________________, (address) hereinafter called purchaser, his heirs and assigns, the exclusive option to purchase the real __________________________________________ (and personal) property of seller situated in ________________________________, City or Town of _____________________________, County of ___________________________, State of ___________________________________, and particularly described as: _______________________________________________, (give legal description), together with the building and all other improvements thereon, all easements, rights of way, and appurtenances thereto, and all of seller's right, title, and interest in all public ways adjoining the property ___________________________________, (and all the personal property on or employed in connection with the real property, including all items of personal property listed and described in Exhibit ____ hereto attached.  The real and personal property herein described is hereinafter collectively referred to as the property).

 

The option is given on the following terms and conditions:

 

ONE:  PRICE AND TERMS OF PAYMENT:

 

The purchase price for the property shall be __________________________________ Dollars ($ _________ ) which shall be paid, on exercise of this option by purchaser as follows: ___________________________________________________________________ _______________________________________________________ (specify terms).

TWO:  PERIOD OF OPTION AND EXTENSION:

 

This option may be exercised by giving notice thereof to seller ___________________ at ____________________________________________________________________ (address), at any time during the primary period from the date of this instrument until _________________ o’clock ____m., _______________ (date); or during the extension period, if the option is extended herein provided, until _________________ o’clock ___m. ___________________ (date).  The option may be so extended by purchaser giving seller written notice of extension prior to the termination of the primary period, and paying to seller at the time of notice, the additional consideration of __________________________________________________ Dollars ($_______).

 

THREE:  TITLE:

 

If the option is exercised, seller shall within ___________________ days after the delivery to him of the notice of exercise, secure and submit to purchaser for examination by his attorney’s evidence of merchantable title in the property by ___________________________________ (preliminary title report of a qualified title insurance company doing business in the State of _______________________ or as the case may be).  Within ____________ days thereafter purchaser shall give notice in writing to seller of any defects in or objections to the title as so evidenced, and seller shall clear the title of the defects and objections so specified.

 

If seller fails to clear title to the extent herein required or to submit evidence of his ability to do so prior to closing, and such failure continues for ______________ days after the date of exercise of the option, purchaser may clear title to the extent so required and charge the cost of clearing to seller or, at his option, may terminate the contract by giving _________ days notice to seller.  Title may be conveyed as herein provided shall be merchantable title, free and clear of all liens, encumbrances, restrictions, and easements, except the following: ___________________________ ___________________________________________________________________

_________________________________________________ ( set forth exceptions).

 

FOUR:  ESCROW; CLOSING:

 

An escrow shall be opened with _________________ (name of escrow agent) of  ______________________________________ (address) within ______ days after exercise of this option.  All necessary documents shall be delivered to the escrow agent and all payments required hereunder, including payment of the balance of the purchase price, shall be made to escrow agent.  Seller and purchaser shall execute such escrow in instructions, not inconsistent with the terms of this option, as may be requested by the escrow agent from time to time.  Taxes and assessments for the current year, water rents due but not delinquent, rentals under existing leases and tenancies, and _____________ (specify other items) shall be prorated between the parties as of the date of closing of escrow.  The sale transaction shall close when the escrow agent is able to comply with the provisions hereof.  If closing is not accomplished within __________ days from the date of exercise of this option or such extended period thereafter, not to exceed  ________ days, as provided for by escrow instructions, at the election of either party the escrow shall be terminated, and all deposits made on the account of the purchase price and instruments deposited in escrow shall be returned to the respective parties entitled thereto.

 

FIVE:  POSSESSION AND RISK OF LOSS:

 

Seller shall continue in possession of the property until close of escrow, and shall maintain the same in its present condition, reasonable wear from ordinary use excepted.  Possession shall be transferred to purchaser (on closing or within ___________ days after closing).

SIX:  NOTICES:

 

Any notice hereunder shall be given in writing to the party for whom it is intended in person or by registered mail at the following address, or such future address as may be designated in writing: to the seller, at the address set forth above; to the purchaser at  ____________________________________________________________________ ____________________________________ (address) of succession or assignment.

 

SEVEN:  ASSIGNMENT AND SUCCESSION:

 

This option and the contract resulting from the exercise thereof shall bind and inure to the benefit of the heirs, administrators, executors, successors, and assigns of the respective parties.  All rights of purchase hereunder may be assigned without restriction, but notice of each assignment shall be given in writing to seller.

 

Executed in duplicate on ________________________ (month & day), ____ (year).

 

 

_____________________________________________________ (Signature of seller)