NJ Non Exclusive Option Agreement

4 Replies

Iit allows the seller to market the property as well as myself. if I find a buyer first I assign my contractual rights to the end buyer. If the seller finds a buyer first the agreement becomes null and void. its is a unilateral agreement that allows me to gain principal interest in a property without the risk of an exclusive purchase agreement if I cant secure funding and/or my end buyer falls through.

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Don't know what guru thought that up, trying to mix an exclusive/non-exclusive listing with an option.

That is not an option then.

Have you hear of a "first right of refusal" ? Make it simple, do a contract with the FROR, add an addendum saying the seller may continue to market. That's all you need and you actually do have more control than an invalid instrument misapplied by definition, providing covenants that are opposed to the type of agreement that require specific obligations. :).

Isa, did you ever do this type of contract or the FROR as Bill suggested? I'm not sure how the FROR serves any purpose you had in mind of keeping the seller free to market his/her property while you work to secure funding or a buyer.

Speaking of which, with Dodd Frank, in such a contract I can't imagine you could state as a non-agent that you'd be looking for a buyer could you? Would you just mention your intention of securing funding only in this type of contract to be on the safe side, pun intended?

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