When submitting and option contract do I need to have a lawyer draw up the contract or is their a standard contract that I can use?
You are in MD?
I would ask a MD Realtor for an Option to Purchase Agreement on their form.
That said, here is one, along with Escrow Instructions.
I've never seen a good option contract from any internet source or guru.
An option, as Brian eluded to, is a sales contract with the default provisions taken out for the buyer since there are no requirements to close an option.
An option should address every issue your local sales contract addresses, the whole idea of an option is to conduct a sakes transactions at a later date, but at the sole option or by choice of the buyer.
Not addressing settlement agreements means you, as a buyer may elect to buy and then later have to agree how you'll buy. If there are disagreements as to aspects of the sale, then you can have conflict that can delay your purchase, in fact, to a point where you may not be able to buy without assistance from an attorney and if you're not following local custom, your position may not hold water. :)
Don't make the options contract more difficult than it has to be. You don't need an attorney for the contract, you just need to understand your state's laws in regards to real estate option contracts. Some regard long-term option contracts as actual purchases.
God Bless You!
The last option contract I drew up, I did it on the kitchen counter of the property I was optioning, using yellow lined paper and a clip board.
aaron: that worked? Was it very close to a sale contract except a long escrow/due dilagence period? Thats pretty much what a title agent told me to do. I would think an option that only specifies price, may give a seller an out later if they change their mind. Or they end up ripping the house apart to get back at the sale they dont want
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