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)
