Letter To Exercise Real Estate Purchase Option

2 Replies

Hello BiggerPockets Colleagues,

Does anyone have a sample of a "Letter to Exercise Real Estate Purchase Option"?

I am making my documents to use for Wholesaling/Assigning Property.

Thank you in advance!

@Charles Stewart II ...if you are assigning property, you would need a simple assignment clause....at the end of the day, the language in your purchase contract needs to reflect your intended outcome...I would suggest you talk to an attorney if you want to build customized purchase agreements...or use the local board approved contract and add an assignment clause

I have drafted my two contracts which I intend to have an attorney review this week.  I would like an opinion and critique from you and any other members.  Thank you.

Option to Purchase For Assignment Real Estate Agreement

THIS OPTION AGREEMENT ("Agreement") made and entered into this day of , 20

by and between ,

hereinafter referred to as "Optionor"

and ,

hereinafter referred to as "Optionee":

REAL PROPERTY: WHEREAS, Optionor is the fee simple owner of certain real property being, lying and situated in the Parish of , State of Louisiana, such real property having the street address of:

GRANT OF OPTION. For and in consideration of the Option Fee payable to Optionor as set forth herein, Optionor does hereby grant to Optionee the exclusive right and Option ("Option") to purchase the premises (land and improvements), upon the terms and conditions as set forth herein. Optionor grants this option for the consideration of ten dollars and zero cents ($10.00).

IV. OFFER OF OPTION: Optionee has the option to purchase this property for the price of $.

V. PERIOD OF OPTION: Upon agreement the option would begin on the date of , 20 and end on the date of , 20.

VI. TERMS AND CONDITION OF OPTION:

1. Optionor and Optionee understand that this Contract/Agreement is Assignable.

2. Optionor understands that Optionee may purchase this property or find an End-Buyer (i.e. new

buyer) and assign this Option Agreement to End-Buyer for an assignment fee (to be paid by End-Buyer).

3. Optionor understands this Option Agreement is “subject to” Optionee finding a qualified End-Buyer.

4. Optionor understands that Optionee is acting as a principle in the transaction and is not

working as a licensed real estate agent representing anyone other than himself in this transaction.

5. Upon Optionee exercising of this option, both parties agree to move forward with the

necessary standard purchase and sales agreement.

6. Optionor may cancel this agreement at any time prior to exercise should he find his own

Optionee or tenant or decide not to sell. This cancellation must be done in writing.

7. Optionor grants Optionee access to the above property for showing to prospective buyers,

contractors, or appraisers, along with the right to put signage in the yard advertising the

property for sale.

8. If Optionee does not acquire an End-Buyer within the time limit agreed upon in Section V “PERIOD OF OPTION”, noted above within this Option Agreement, this Option Agreement becomes null and void.

9. All parties agree that property is being sold in present “as is” condition.

10. Time is of the essence in this agreement.

EXERCISE OF OPTION. Optionee may exercise its exclusive right to assign the option or purchase the Premises pursuant to the Option, at any time during the “Period of Option”, by giving written notice thereof to Optionor. As provided for above, the date of sending of said notice shall be the Option Exercise Date. In the event the Optionee does not exercise its exclusive right to assign the option or purchase the Premises granted by the Option during the “Period of Option”, Optionor shall be entitled to retain the Option Fee, and this agreement shall become absolutely null and void and neither party hereto shall have any other liability, obligation or duty herein under or pursuant to this Agreement.

VII. Additional Terms:

Optionee: Date:

Optionor: Date: 

ASSIGNMENT OF OPTION OF REAL ESTATE PURCHASE AND SALE AGREEMENT

THIS ASSIGNMENT is made this day of , by

(hereinafter referred to as "Assignor") to

(hereinafter referred to as "Assignee").

WHEREAS, Assignor has entered into a certain Real Estate Purchase and Sale Agreement with

as "Seller" and Assignor as "Buyer" which Agreement was

executed on , by said Assignor and said Seller for the purchase and sale of

certain real property being, lying and situate in Parish, in the state of Louisiana, and more particularly described in said Agreement, copy of said Agreement being attached hereto; and,

WHEREAS, Assignor desires to assign, transfer, sell and convey to Assignee all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement; and,

WHEREAS, Assignee is desirous of receiving all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement;

NOW, THEREFORE, for and in consideration of the sum of

and other good and valuable considerations, the sufficiency of which is hereby acknowledged, Assignor has assigned, transferred, sold and conveyed and by these presents does hereby assign, transfer, sell and convey unto Assignee all of Assignor's right, title and interest in, to and under said Real Estate Purchase and Sale Agreement.

Assignor agrees to receive and Assignee agrees to pay in full said assignment consideration on or before the closing date of said Real Estate Purchase and Sale Agreement.

This Assignment shall be binding upon Assignor and shall inure to the benefit of Assignee and its successors, heirs and assigns.

Assignee hereby assumes all of Assignor's duties and obligations under said Real Estate Purchase and Sale Agreement. Assignee agrees to perform all covenants, conditions and obligations required by Assignor under said Agreement and agree to defend, indemnify and hold Assignor harmless from any liability or obligation under said Agreement. Assignee further agrees to hold Assignor harmless from any deficiency or defect in the legality or enforceability of the terms of said agreement.

Assignee agrees and understands that Assignor is not acting as a real estate broker or agent in this transaction and is not representing either party, but rather is acting as a principal in selling his interest in the above-referenced agreement to Assignee.

Assignee is in possession of the original agreement.

_________________________________________ ______________
Assignor Date

_________________________________________ ______________
Assignee Date