[{"data":1,"prerenderedAt":513},["ShallowReactive",2],{"document-option-to-purchase-real-estate-property-D1194":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":173,"customdescription":6,"mdFm":174,"mdProseHtml":512},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"OPTION TO PURCHASE This Option to Purchase (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Purchaser\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Vendor\"), an individual with his main address located at: [COMPLETE ADDRESS] OPTION TO PURCHASE I, the undersigned, [SECOND PARTY NAME] (the \"Vendor\") residing at [FULL ADDRESS], [State/Province] of [STATE/PROVINCE], in consideration of the sum of [AMOUNT] ($[AMOUNT]) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant to [YOUR COMPANY NAME] (the \"Purchaser\") an irrevocable option to purchase from me the immoveable property in the City of [CITY] more specifically described below (the \"Option\"). DESCRIPTION That certain emplacement known as Lot Number [NUMBER] on the Official Plan and Book of Reference for the City of [CITY], [State/Province] of [STATE/PROVINCE], having a frontage of approximately [NUMBER] feet and a depth of approximately [NUMBER] feet (the \"Property\"). PURCHASE PRICE The total purchase price for the Property shall be $[AMOUNT] ($[AMOUNT]) (the \"Purchase Price\"). TERM AND EXERCISE This Option to Purchase shall be valid for the period of [NUMBER] ([NUMBER]) months commencing on [DATE] and terminating at midnight, [DATE] (the \"Term\"). [YOUR COMPANY NAME] may exercise the Option at any time prior to the expiration of the Term by notice in writing to that effect, delivered by hand or sent by prepaid registered mail to the Vendor, [FULL ADDRESS]. Should [YOUR COMPANY NAME] not exercise the Option prior to the expiry of the Term, this Option to Purchase shall forthwith be null and void and of no further effect. LEASE For the period of the Term, the Vendor shall lease the Property to [YOUR COMPANY NAME] on the terms and conditions set out in the following subsections and unless [YOUR COMPANY NAME] exercises the Option during the [NUMBER] ([NUMBER]) months of the Term, the Vendor shall be bound to lease the Property for the entire duration of the Term: Rent The rent for the Term shall be $[AMOUNT] ($[AMOUNT]) (the \"Rent\"), payable by [YOUR COMPANY NAME] by check in equal and consecutive monthly installments of $[AMOUNT] DOLLARS ($[AMOUNT]) (the \"Rental Installments\"), in advance on the [NUMBER] ([NUMBER]) day of each month during the Term. Premises The lease contemplated in this Section 5 shall include the Property and the land and buildings erected thereon (referred to in this Section as the \"Leased Premises\") as well as all moveable property of whatsoever kind or description contained in the Leased Premises, including tools, machinery, furniture, appliances, utensils, decorations as well as other objects which are destined to furnish and ornament the said buildings (referred to in this Section as the \"Moveable Effects\"). 5.3 Electricity and Utilities The cost of supplying all electricity and utilities, used or consumed in the Leased Premises during the Term shall be borne by [YOUR COMPANY NAME]. 5.4 Other Obligations During the Term, [YOUR COMPANY NAME] shall: (i) maintain the Leased Premises in a habitable condition and in a good state of repair and (ii) not remove any of the Moveable Effects from the Leased Premises. 5.5 Idem [YOUR COMPANY NAME] agrees to pay the Rental Installments and the electricity and utility charges pursuant to this Section 5 solely in consideration of the Vendor leasing the Leased Premises to [YOUR COMPANY NAME] for the Term. Should [YOUR COMPANY NAME] not exercise the Option, he shall have no right or recourse against the Vendor for any of the amounts paid pursuant to this Section 5. 5.6 Expiry of Term Should [YOUR COMPANY NAME] not exercise the Option, [YOUR COMPANY NAME] agrees that at the expiration of the Term he shall: (i) leave the Leased Premises in a clean condition and in a good state of repair and (ii) leave all Moveable Effects in the same condition they were in at the beginning of the Term. PURCHASE TERMS AND CONDITIONS Should [YOUR COMPANY NAME] exercise the Option, the Vendor undertakes to sell and transfer ownership of the Property to [YOUR COMPANY NAME] within [NUMBER IN LETTERS] ([NUMBER]) days of the date of exercise of the Option, upon the following terms and conditions: 6.1 Payment",null,"Option to Purchase Real Estate Property","4",57,"doc","https://templates.business-in-a-box.com/imgs/1000px/option-to-purchase_real-estate-property-D1194.png","https://templates.business-in-a-box.com/imgs/250px/1194.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1194.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Real Estate","/templates/real-estate-business/",{"label":20,"url":21},"Business Checklists","/templates/business-checklists/","option to purchase real estate property","Option to Purchase Real Estate Property Template","https://templates.business-in-a-box.com/imgs/400px/1194.png","https://templates.business-in-a-box.com/imgs/600px/1194.png",[27,16,19],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Legal Agreements","/templates/business-legal-agreements/",{"label":36,"url":37},"Real Estate & Leases","/templates/real-estate-and-leases/",[39,43,46,50,54,58,62,66,70,74,78,82,86,100,114,128,143,157],{"label":40,"url":41,"thumb":42,"extension":10},"Offer to Purchase Real Estate Property","/template/offer-to-purchase-real-estate-property-D1190","https://templates.business-in-a-box.com/imgs/250px/1190.png",{"label":40,"url":44,"thumb":45,"extension":10},"/template/offer-to-purchase-real-estate-property-D1189","https://templates.business-in-a-box.com/imgs/250px/1189.png",{"label":47,"url":48,"thumb":49,"extension":10},"Deed of Sale Real Estate Property","/template/deed-of-sale-real-estate-property-D1172","https://templates.business-in-a-box.com/imgs/250px/1172.png",{"label":51,"url":52,"thumb":53,"extension":10},"Asset Purchase Agreement For a Real Estate Property","/template/asset-purchase-agreement-for-a-real-estate-property-D930","https://templates.business-in-a-box.com/imgs/250px/930.png",{"label":55,"url":56,"thumb":57,"extension":10},"Offer to Purchase Real Estate Property_Short Form","/template/offer-to-purchase-real-estate-property-short-form-D1191","https://templates.business-in-a-box.com/imgs/250px/1191.png",{"label":59,"url":60,"thumb":61,"extension":10},"Real Estate Purchase Agreement","/template/real-estate-purchase-agreement-D13234","https://templates.business-in-a-box.com/imgs/250px/13234.png",{"label":63,"url":64,"thumb":65,"extension":10},"Assignment of Real Estate Contract","/template/assignment-of-real-estate-contract-D1158","https://templates.business-in-a-box.com/imgs/250px/1158.png",{"label":67,"url":68,"thumb":69,"extension":10},"Assignment of Real Estate Contract and Sale Agreement","/template/assignment-of-real-estate-contract-and-sale-agreement-D1157","https://templates.business-in-a-box.com/imgs/250px/1157.png",{"label":71,"url":72,"thumb":73,"extension":10},"Worksheet Commercial Real Estate Investment Assessment","/template/worksheet-commercial-real-estate-investment-assessment-D13806","https://templates.business-in-a-box.com/imgs/250px/13806.png",{"label":75,"url":76,"thumb":77,"extension":10},"Real Estate Salesman Independent Contractor Agreement","/template/real-estate-salesman-independent-contractor-agreement-D1198","https://templates.business-in-a-box.com/imgs/250px/1198.png",{"label":79,"url":80,"thumb":81,"extension":10},"Notice of Exercise of Option to Purchase","/template/notice-of-exercise-of-option-to-purchase-D1213","https://templates.business-in-a-box.com/imgs/250px/1213.png",{"label":83,"url":84,"thumb":85,"extension":10},"Real Estate Commission Agreement","/template/real-estate-commission-agreement-D13759","https://templates.business-in-a-box.com/imgs/250px/13759.png",{"description":87,"descriptionCustom":6,"label":75,"pages":88,"size":89,"extension":10,"preview":90,"thumb":77,"svgFrame":91,"seoMetadata":92,"parents":93,"keywords":98,"url":99},"REAL ESTATE SALESMAN INDEPENDENT CONTRACTOR AGREEMENT This Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [BROKER NAME] (the \"Broker\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Salesman\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS The Parties recite that: Broker is duly registered and licensed with the State of [STATE/PROVINCE] as a real estate broker whose license expires [DATE]. Salesman is duly registered and licensed with the State of [STATE/PROVINCE] as a real estate salesman whose license expires [DATE]. In consideration of the mutual covenants set forth below, the parties agree as follows: STATEMENT OF EMPLOYMENT Effective as of the date of this Agreement, Broker employs Salesman as a real estate salesman. DUTIES OF SALESMAN Salesman will carry on the customary activities of a real estate salesman, including, but not necessarily limited to, the showing of parcels of real estate on which Broker has listings, thesale of such property in accordance with the terms of the listings, the solicitation of new listings, and such other services pertaining to the real estate business as Broker may require of him. Salesman shall devote his entire time and attention to such duties and shall use his best efforts with regard to all of such duties. COMMISSIONS ON SALES Broker shall pay to Salesman a commission equal to [%] percent of the total commission received by Broker, on sales made by Salesman and completed during the effective period of this Agreement. Furthermore, during the effective period of this Agreement, Broker will advance to Salesman against commissions to be earned the sum of [AMOUNT] per month, provided that Salesman may elect to draw commissions as earned. DURATION OF AGREEMENT; TERMINATION The term of this Agreement shall be for [NUMBER] years, commencing on the date of this Agreement. Either party may terminate this Agreement by [NUMBER] days' written notice to the other party. If, on termination of this Agreement, Broker has advanced to Salesman against commissions to be earned a sum of commissions actually earned by Salesman, Salesman will promptly refund the amount of the excess advances. ACCESS TO LISTINGS AND OTHER INFORMATION Broker will give Salesman access to its confidential files pertaining to listings of property, prospects for the sale of such property, and other related matters","3",42,"https://templates.business-in-a-box.com/imgs/1000px/real-estate-salesman-independent-contractor-agreement-D1198.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1198.xml",{"title":6,"description":6},[94,96],{"label":17,"url":95},"real-estate-business",{"label":20,"url":97},"business-checklists","real estate purchase agreement","/template/real-estate-purchase-agreement-D1198",{"description":101,"descriptionCustom":6,"label":102,"pages":103,"size":104,"extension":10,"preview":105,"thumb":106,"svgFrame":107,"seoMetadata":108,"parents":110,"keywords":109,"url":113},"LEASE TO OWN AGREEMENT This Lease to Own Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Landlord/Seller\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Tenant/Buyer\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] WHEREAS the Landlord wishes to lease its property to the Tenant and give an option to purchase as well; WHEREAS the Tenant wishes to take the property on lease and have an option to purchase the same. NOW THEREFORE, in consideration of the premises and of the mutual agreements contained in this Agreement, the Parties hereto agree as follows: DESCRIPTION The Landlord/Seller agrees to lease, and the Tenant/Buyer agrees to rent the property located at: [ENTER PROPERTY ADDRESS] TERM The term of this Lease/Option shall be for a period of ________ months commencing on _____________ and ending on ____________. The term will be automatically extended for _______ periods of_________ months, unless the Tenant/Buyer gives notice to the Landlord/Seller of its intent to terminate this Lease, by mailing a written notice to the last provided address of the Landlord/Seller. Liability for payment will not extend beyond notice to terminate this Agreement. RENT AND RENT CREDIT The Tenant/Buyer agrees to pay to the Landlord/Seller, the sum of $__________ per month, with the first payment beginning _______________ as rent for the property, for the term of this Lease/Option, and during any extensions thereof. All rental payments shall be due and payable in advance on the 1st day of each and every month. An amount equal to $_____________ for each month in which rent was paid, shall be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option hereunder; otherwise, this credit shall be non-refundable and considered forfeited if the option is not exercised. PURCHASE OPTION 4.1 The Tenant/Buyer, as part of the consideration herein, is hereby granted the exclusive right, option and privilege of purchasing said property at any time during the term of this Lease/Option Agreement or any extension thereof. The Tenant/Buyer shall notify the Landlord/Seller in writing of the exercise of this option at least ten (10) days prior to the expiration of the initial term of this Lease/Option, or the expiration of any extension thereof, by mail to the last-provided address of the Landlord/Seller. PURCHASE OPTION PRICE AND TERMS 5.1 The Tenant/Buyer agrees to pay for said property the sum of $____________ less any sums for which the Tenant/Buyer is entitled to claim reimbursement or offset in accordance with this Agreement, the net sum to be paid in cash, certified check, or e-transfer. The Tenant/Buyer has given a non-refundable option consideration of $___________ for the purchase. Additional sums will be properly credited. COVENANTS OF TENANT/BUYER Commencing with and during the term of this Agreement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows: That the Tenant/Buyer will pay all utility charges and bills, including, but not limited to, water, sewer, gas, oil, and electric, which may be assessed or charged against the property; That the Tenant/Buyer will not use the property for any unlawful purpose; and that the Tenant/Buyer will conform to and obey all laws, ordinances, rules, regulations, requirements and orders of all federal, state, and local governmental authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property; and That the Tenant/Buyer will surrender and deliver the property at the end of the term or any extensions thereof, should the option herein not be exercised, in as good order and condition as the same now exists, reasonable use and natural wear and tear excepted. COVENANTS OF LANDLORD/SELLER Commencing with and during the term of this Agreement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows: That the Landlord/Seller shall pay for and maintain fire and extended coverage insurance on said property. That the Tenant/Buyer shall peaceably and quietly hold, occupy, use and enjoy the property, without any let, hindrance by the Landlord/Seller or any person associated therewith. BREACH BY TENANT/BUYER If the Tenant/Buyer shall fail to keep and perform any of the covenants, agreements, or provisions of this Lease/Option, or if the Tenant/Buyer shall abandon the property, it shall be lawful for the Landlord/Seller to enter into said property and again have, repossess, and enjoy the same as if this Lease/Option had not been made, and thereupon, this Lease/Option and everything herein contained on the part of the Landlord/Seller to be done and performed shall cease, determine and be utterly void. The commencement of a proceeding or suit in forcible entry and detainer or in ejectment, or otherwise after any default by the Tenant/Buyer, shall be equivalent in every respect to actual entry by the Landlord/Seller. DEFAULT BY LANDLORD/SELLER (PAYMENTS) In the event the Landlord/Seller is delinquent on any payments required under this Agreement or pertinent to the above property, the Tenant/Buyer shall have the right to make such payments as necessary to cure said default on behalf of the Seller/Landlord. COSTS OF IMPROVEMENTS","Lease To Own Agreement","6",513,"https://templates.business-in-a-box.com/imgs/1000px/lease-to-own-agreement-D12870.png","https://templates.business-in-a-box.com/imgs/250px/12870.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12870.xml",{"title":109,"description":6},"lease to own agreement",[111,112],{"label":17,"url":95},{"label":20,"url":97},"/template/lease-to-own-agreement-D12870",{"description":115,"descriptionCustom":6,"label":116,"pages":117,"size":118,"extension":10,"preview":119,"thumb":120,"svgFrame":121,"seoMetadata":122,"parents":123,"keywords":126,"url":127},"COMMERCIAL LEASE AGREEMENT This Lease Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Landlord\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [TENANT NAME] (the \"Tenant\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] DESCRIPTION OF PREMISES Landlord leases to Tenant the premises located at [address], [city], [state], and described more particularly as follows: [insert legal description]. GRANT OF LEASE Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed and observed by the Tenant, does hereby lease to the Tenant and the Tenant does hereby lease and take from the Landlord the property described in Exhibit \"A\" attached hereto and by reference made a part hereof (the \"Leased Premises\"), together with, as part of the parcel, all improvements located thereon. LEASE TERM Total Term of Lease: The term of this Lease shall begin on the commencement date, as defined in Section b) of this Article 3, and shall terminate on [DATE]. Commencement Date: The \"Commencement Date\" shall mean the date on which the Tenant shall commence to conduct business on the Leased Premised, so long as such date is not in excess of [NUMBER] days subsequent to execution hereof. EXTENSIONS The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed by the parties at the time of any such extension. DETERMINATION OF RENT The Tenant agrees to pay the Landlord and the Landlord agrees to accept, during the term hereof, at such place as the Landlord shall from time to time direct by notice to the Tenant, rent at the following rates and times: Annual Rent: Annual rent for the term of the Lease shall be [AMOUNT], plus applicable sales tax. Payment of Yearly Rent: The annual rent shall be payable in advance in equal monthly installments of one-twelfth (1/12th) of the total yearly rent, which shall be [AMOUNT], on the first day of each and every calendar month during the term hereof, and prorata for the fractional portion of any month, except that on the first day of the calendar month immediately following the Commencement Date, the Tenant shall also pay to the Landlord rent at the said rate for any portion of the preceding calendar month included in the term of this Lease. Reference to yearly rent hereunder shall not be implied or construed to the effect that this Lease or the obligation to pay rent hereunder is from year to year, or for any term shorter than the existing Lease term, plus any extensions as may be agreed upon. A late fee in the amount of [AMOUNT] shall be assessed if payment is not postmarked or received by Landlord on or before the tenth day of each month. USE OF PROPERTY BY TENANT The Leased Premises may be occupied and used by Tenant exclusively as a [DESCRIBE], to be known as a [DESCRIBE]. Nothing herein shall give Tenant the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any Sub-Tenant, assignee, or licensee, which or who shall use the property for any other use. RESTRICTIONS ON USE Tenant shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of Tenant's business purposes. Tenant shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised premises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance. WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Tenant shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose. DELAY IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of Landlord to deliver possession to Tenant on the date set forth in Section 3. Landlord shall not be liable to Tenant for any loss or damage suffered by reason of such a delay; provided, however, that Landlord does deliver possession no later than [date]. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession. SECURITY DEPOSIT The Tenant has deposited with the Landlord the sum of [AMOUNT] as security for the full and faithful performance by the Tenant of all the terms of this lease required to be performed by the Tenant. Such sum shall be returned to the Tenant after the expiration of this lease, provided the Tenant has fully and faithfully carried out all of its terms. In the event of a bona fide sale of the property of which the leased premises are a part, the Landlord shall have the right to transfer the security to the purchaser to be held under the terms of this lease, and the Landlord shall be released from all liability for the return of such security to the Tenant. TAXES Property Taxes: The Tenant shall be liable for all taxes levied against any leasehold interest of the Tenant or personal property and trade fixtures owned or placed by the Tenant in the Leased Premises. Real Estate Taxes: During the continuance of this lease Landlord shall deliver to Tenant a copy of any real estate taxes and assessments against the Leased Property. From and after the Commencement Date, the Tenant shall pay to Landlord not later than [NUMBER] days after the day on which the same may become initially due, all real estate taxes and assessments applicable to the Leased Premises, together with any interest and penalties lawfully imposed thereon as a result of Tenant's late payment thereof, which shall be levied upon the Leased Premises during the term of this Lease. Contest of Taxes: The Tenant, at its own cost and expense, may, if it shall in good faith so desire, contest by appropriate proceedings the amount of any personal or real property tax. The Tenant may, if it shall so desire, endeavor at any time or times, by appropriate proceedings, to obtain a reduction in the assessed valuation of the Leased Premises for tax purposes. In any such event, if the Landlord agrees, at the request of the Tenant, to join with the Tenant at Tenant's expense in said proceedings and the Landlord agrees to sign and deliver such papers and instruments as may be necessary to prosecute such proceedings, the Tenant shall have the right to contest the amount of any such tax and the Tenant shall have the right to withhold payment of any such tax, if the statute under which the Tenant is contesting such tax so permits. Payment of Ordinary Assessments: The Tenant shall pay all assessments, ordinary and extraordinary, attributable to or against the Leased Premises not later than [NUMBER] days after the day on which the same became initially due. The Tenant may take the benefit of any law allowing assessments to be paid in installments and in such event the Tenant shall only be liable for such installments of assessments due during the term hereof. ","Commercial Lease Agreement","19",145,"https://templates.business-in-a-box.com/imgs/1000px/lease-agreement-D1179.png","https://templates.business-in-a-box.com/imgs/250px/1179.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1179.xml",{"title":6,"description":6},[124,125],{"label":17,"url":95},{"label":20,"url":97},"lease agreement","/template/lease-agreement-D1179",{"description":129,"descriptionCustom":6,"label":130,"pages":131,"size":132,"extension":10,"preview":133,"thumb":134,"svgFrame":135,"seoMetadata":136,"parents":137,"keywords":141,"url":142},"JOINT VENTURE AGREEMENT This Joint Venture Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"First Joint Venturer\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND JOINT VENTURER NAME] (the \"Second Joint Venturer\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] This Agreement is entered by First Joint Venturer and Second Joint Venturer, herein after collectively referred to as the \"Joint Venturers\", for the purpose of performing: [DESCRIBE JOINT VENTURE]. WITNESSETH: WHEREAS, the parties are desirous of forming a Joint Venture (the \"Venture\"), under the laws of the [State/Province] of [STATE/PROVINCE] by execution of this Agreement for the purposes set forth herein and are desirous of fixing and defining between themselves their respective responsibilities, interests, and liabilities in connection with the performance of the before mentioned project; and NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the Parties herein agree to constitute themselves as Joint Venturers, henceforth, \"Venturers\" for the purposes before mentioned, and intending to be legally bound hereby, the parties hereto, after first being duly sworn, do covenant, agree and certify as follows: DEFINITIONS \"Affiliate\" shall refer to (i) any person directly or indirectly controlling, controlled by or under common control with another person, (ii) any person owning or controlling 10% or more of the outstanding voting securities of such other person, (iii) any officer, director or other partner of such person and (iv) if such other person is an officer, director, joint Venturer or partner, any business or entity for which such person acts in any such capacity. \"Venturers\" shall refer to [VENTURE NAME] Inc., and any successor(s) as may be designated and admitted to the Venture. \"Internal Revenue Code\", \"Code\" or \"I.R.C.\" shall refer to the current and applicable Internal Revenue Code. \"Net Profits and Net Losses\" means the taxable income and loss of the Venture, except as follows: [DESCRIBE] The \"Book\" value of an asset shall be substituted for its adjusted tax basis if the two differ, but otherwise Net Profits and Net Losses shall be determined in accordance with federal income tax principles. \"Project\" shall refer to that certain [DESCRIBE] project known as [NAME]. \"Treasury Regulations\" shall refer to those regulations promulgated by the Department of the Treasury with respect to certain provision of Internal Revenue Code. \"Percentage of Participation\" shall refer to that figure set forth in Exhibit A. FORMATION, NAME, AND PRINCIPLE PLACE OF BUSINESS Formation (a) The Venturers do hereby form a joint venture pursuant to the laws of the State of [STATE/PROVINCE] in order for the Venture to carry on the purposes for which provision is made herein. (b) The Ventures shall execute such certificates as may be required by the laws of the [State/Province] of [STATE/PROVINCE] or of any other state in order for the Venture to operate its business and shall do all other acts and things requisite for the continuation of the Venture as a joint venture pursuant to applicable law. Name The Name and style under which the Venture shall be conducted is: [DESCRIBE]. Principal place of business The Venture shall maintain its principal place of business at [FULL ADDRESS]. The Venture may re-locate its office from time to time or have additional offices as the Venturers may determine. PURPOSE OF THE JOINT VENTURE The business of the Venture shall be to perform: [DESCRIBE], a project having the Contract # , being entitled, and being in a dollar amount of [AMOUNT], in accordance with the contract documents for the Project and all such other business incidental to the general purposes herein set forth. TERM The term of the Venture shall commence as of the date hereof and shall be terminated and dissolved upon the earliest to occur of: (i) completion of the Project and receipt of all sums due the Venture by the Owner, [OWNER NAME] pursuant thereto and payment of all laborers and material men employed by the Venture in connection with the project; (ii) [DATE]; (iii) the unanimous agreement of the Ventures; or (iv) the order of a court of competent jurisdiction. PERCENTAGE OF PARTICIPATION Description Except as otherwise provided in sections 6.0 and 9.0 hereof, the interest of the Parties in any gross profits and their respective shares in any losses and/or liabilities that may result from the filing of a joint bid and/or the performance of the Construction Contract, and their interests in all property and equipment acquired and all money received in connection with the performance of the Contract shall be as follows: [Name Joint Venture Partner Percentage] Losses The Parties agree that in the event any losses arise out of or results from the performance of the Project, each Venturer shall assume and pay the share of the losses that is equal to the percentage of participation. Liabilities If for any reason, a Venturer sustains any liabilities or is required to pay any losses arising out of or directly connected with the Project, or the execution of any surety bonds or indemnity agreements in connection therewith, which are in excess of its Percentage of Participation, in the Joint Venture, the other Venturer shall promptly reimburse such Venturer this excess, so that each and every member of the Joint Venturer will then have paid its proportionate share of such losses to the full extent of its Percentage of Participation. Indemnities The Venturers agree to indemnify each other and to hold the other harmless from, any and all losses of the Joint Venture that are in excess of such other Venturer's Percentage of Participation. Provided that the provisions of this subsection shall be limited to losses that are directly connected with or arise out of the performance of the Project and/or the execution of any bonds or indemnity agreements in connection therewith and shall not be relate to or include any incidental, indirect or consequential losses that may be sustained or suffered by a Party. Duration The Parties shall from time to time execute such bonds and indemnity agreements, including applications there and other documents that may be necessary in connection with the performance of the Project. Provided however, that the liability of each of the Parties under any agreements to indemnify a surety company or surety companies shall be limited to the percentage of the total liability assumed by all the Parties under such indemnity agreements that is equal to the Party's Percentage of Participation. Initial contribution of the venture (a) The Venturers shall contribute the Property to the Venture and their Capital Account shall each be credited with the appropriate value of such contribution in accordance with their Venture interests. (b) Except as otherwise required by law or this Agreement, the Venturers shall not be required to make any further capital contributions to the Venture. Venture interests Upon execution of this Agreement, the Venturers shall each own the following interests in the Venture: Joint Venture Partner Percentage Return of capital contributions (a) No Venturer shall have the right to withdraw his capital contributions or demand or receive the return of his capital contributions or any part thereof, except as otherwise provided in this Agreement. (b) The Venturers shall not be personally liable for the return of capital contributions or any part thereof, except as otherwise provided in this Agreement. (c) The Venture shall not pay interest on capital contributions of any Venturer.","Joint Venture Agreement","7",70,"https://templates.business-in-a-box.com/imgs/1000px/joint-venture-agreement-D889.png","https://templates.business-in-a-box.com/imgs/250px/889.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#889.xml",{"title":6,"description":6},[138,140],{"label":33,"url":139},"business-legal-agreements",{"label":33,"url":139},"joint venture agreement","/template/joint-venture-agreement-D889",{"description":144,"descriptionCustom":6,"label":145,"pages":88,"size":104,"extension":10,"preview":146,"thumb":147,"svgFrame":148,"seoMetadata":149,"parents":151,"keywords":150,"url":156},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":150,"description":6},"non disclosure agreement nda",[152,153],{"label":33,"url":139},{"label":154,"url":155},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":158,"descriptionCustom":6,"label":159,"pages":8,"size":104,"extension":10,"preview":160,"thumb":161,"svgFrame":162,"seoMetadata":163,"parents":165,"keywords":164,"url":172},"CHECKLIST CUSTOMER DUE DILIGENCE Customer Due Diligence (CDD) is a critical process to ensure compliance with regulatory standards and safeguard against financial crimes. This checklist outlines the essential steps for effective CDD, from initial customer contact to ongoing monitoring and record-keeping. Gathering Customer Information: Individual Customers Full Name: Date of Birth: Nationality: Residential Address: Mailing Address (if different): Contact Number: Email Address: Identification Type (e.g., Passport, Driver's License): Identification Number: Issuing Country/Authority: Expiry Date of Identification Document: Corporate Customers Company Name: Registration Number: Country of Incorporation: Registered Address: Business Address (if different): Nature of Business: Date of Incorporation: Contact Number: Email Address: Website (if any): Directors' Names and Details: Ultimate Beneficial Owners (UBOs) Names and Details: Shareholding Structure: Identity Verification: Verify Identity Documents Document Verification (type of document, number, expiration date) Biometric Verification (if applicable) Verify Address Utility Bill Bank Statement Lease Agreement Additional Verification (if needed): Biometric Authentication Passive Liveness Detection Risk Assessment: Customer Type (Individual/Business): Customer Segment (Retail/Corporate): Industry: Expected Account Activity (Transaction Types, Volumes, and Values): Source of Funds: Purpose of the Account: Geographical Risk (Customer's Country of Origin/Operation): Any High-Risk Indicators (e.g., PEP, sanctions, negative media): Risk Profile Determination (Low, Medium, High): Enhanced Due Diligence (EDD) for High-Risk Customers:","Checklist Customer Due Diligence","https://templates.business-in-a-box.com/imgs/1000px/checklist-customer-due-diligence-D13916.png","https://templates.business-in-a-box.com/imgs/250px/13916.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13916.xml",{"title":164,"description":6},"checklist customer due diligence",[166,169],{"label":167,"url":168},"Business Plan Kit","business-plan-kit",{"label":170,"url":171},"Business Procedures","business-procedures","/template/checklist-customer-due-diligence-D13916",false,{"seo":175,"reviewer":187,"legal_disclaimer":191,"quick_facts":192,"at_a_glance":194,"personas":198,"variants":223,"glossary":248,"clauses":285,"how_to_fill":336,"common_mistakes":377,"faqs":402,"industries":430,"comparisons":447,"diy_vs_lawyer":459,"jurisdictions":472,"related_template_ids_curated":493,"schema":501,"classification":502},{"meta_title":176,"meta_description":177,"primary_keyword":22,"secondary_keywords":178},"Option To Purchase Real Estate Property Template (Free Word)","Free option to purchase real estate property template. Covers purchase price, option period, consideration, and closing terms. Used in 190+ countries. Free Word and PDF download.",[179,180,181,182,183,184,185,186],"option to purchase real estate template","real estate option agreement","option to buy property template","real estate option contract","option to purchase agreement word","property option agreement template free","real estate purchase option clause","option to purchase commercial property",{"name":188,"credential":189,"reviewed_date":190},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":193,"legal_review_recommended":191,"signature_required":191,"notarization_required":173},"advanced",{"what_it_is":195,"when_you_need_it":196,"whats_inside":197},"An Option To Purchase Real Estate Property is a legally binding agreement that grants a buyer the exclusive right — but not the obligation — to purchase a specific property at a predetermined price within a defined time period. This free Word download gives both parties a structured, enforceable starting point covering option consideration, purchase price, exercise conditions, and closing mechanics that you can edit online and export as PDF.\n","Use it when a buyer wants to lock in a purchase price and secure exclusive rights to a property before committing to a full purchase — common in commercial development, lease-to-own arrangements, and investment acquisitions where due diligence or financing takes time to arrange.\n","Parties and property description, option consideration, option period and exercise procedure, purchase price and payment terms, conditions precedent to closing, representations and warranties, default and forfeiture provisions, and governing law.\n",[199,203,207,211,215,219],{"title":200,"use_case":201,"icon_asset_id":202},"Real estate investors","Securing the right to acquire investment properties while arranging financing or partners","persona-real-estate-investor",{"title":204,"use_case":205,"icon_asset_id":206},"Commercial developers","Controlling land or buildings during entitlement, permitting, and feasibility review","persona-developer",{"title":208,"use_case":209,"icon_asset_id":210},"Small business owners","Locking in the right to purchase leased premises before committing to a long-term acquisition","persona-small-business-owner",{"title":212,"use_case":213,"icon_asset_id":214},"Property sellers","Granting a buyer time-limited exclusivity in exchange for upfront option consideration","persona-property-seller",{"title":216,"use_case":217,"icon_asset_id":218},"Franchise operators","Securing future site locations in target markets before a franchise territory is approved","persona-franchise-applicant",{"title":220,"use_case":221,"icon_asset_id":222},"Corporate real estate managers","Optioning expansion sites to lock in pricing ahead of board approval for capital expenditure","persona-operations-director",[224,227,231,234,238,241,245],{"situation":225,"recommended_template":102,"slug":226},"Residential property with a lease-to-own structure","lease-to-own-agreement-D12870",{"situation":228,"recommended_template":229,"slug":230},"Commercial land acquisition pending rezoning or entitlement","Option To Purchase Real Estate Property","option-to-purchase-real-estate-property-D1194",{"situation":232,"recommended_template":59,"slug":233},"Buyer ready to proceed immediately without an option period","real-estate-purchase-agreement-D1198",{"situation":235,"recommended_template":236,"slug":237},"Granting a tenant the right of first refusal if property is listed","Right of First Refusal Agreement","right-of-first-refusal-agreement-D5157",{"situation":239,"recommended_template":116,"slug":240},"Option embedded within a long-term commercial lease","lease-agreement-D1179",{"situation":242,"recommended_template":243,"slug":244},"Land purchase contingent on subdivision or rezoning approval","Conditional Purchase Agreement","conditional-sale-agreement-D1235",{"situation":246,"recommended_template":130,"slug":247},"Option tied to a joint venture for development financing","joint-venture-agreement-D889",[249,252,255,258,261,264,267,270,273,276,279,282],{"term":250,"definition":251},"Option Agreement","A contract that gives one party the right, but not the obligation, to buy a property at a set price within a specified time period.",{"term":253,"definition":254},"Option Consideration","The upfront payment made by the buyer to the seller in exchange for granting the option — typically non-refundable if the option is not exercised.",{"term":256,"definition":257},"Option Period","The defined window of time during which the buyer may exercise the right to purchase the property — commonly 30 days to 24 months.",{"term":259,"definition":260},"Exercise of Option","The formal act by which the buyer notifies the seller in writing that they intend to proceed with the purchase under the terms of the option agreement.",{"term":262,"definition":263},"Purchase Price","The fixed price at which the buyer may purchase the property if the option is exercised, agreed upon at the time the option is signed.",{"term":265,"definition":266},"Conditions Precedent","Events or approvals — such as financing, rezoning, or environmental clearance — that must occur before the buyer is obligated to close the purchase.",{"term":268,"definition":269},"Forfeiture","The loss of the option consideration paid by the buyer when the option expires without being exercised or is abandoned.",{"term":271,"definition":272},"Right of First Refusal","A related but distinct right allowing a party to match any third-party offer before the seller accepts it — different from a fixed-price option.",{"term":274,"definition":275},"Encumbrance","Any lien, mortgage, easement, or restriction on the property's title that could affect the buyer's use or ownership after closing.",{"term":277,"definition":278},"Closing","The final step in the real estate transaction where title transfers from seller to buyer and the purchase price is paid in full.",{"term":280,"definition":281},"Memorandum of Option","A short recorded document that provides public notice of the option agreement's existence without disclosing all of its terms.",{"term":283,"definition":284},"Time of the Essence","A contract clause requiring all deadlines — including the option exercise date — to be met exactly, with failure treated as a material breach.",[286,291,296,301,306,311,316,321,326,331],{"name":287,"plain_english":288,"sample_language":289,"common_mistake":290},"Parties and property description","Identifies the seller and buyer as legal entities and precisely describes the property subject to the option by legal description, address, and parcel number.","This Option To Purchase Agreement is entered into on [DATE] between [SELLER LEGAL NAME] ('Seller') and [BUYER LEGAL NAME] ('Buyer'). The property subject to this option is located at [PROPERTY ADDRESS], legally described as [LEGAL DESCRIPTION], Parcel ID [PARCEL NUMBER] ('Property').","Using only a street address instead of the full legal description. A street address can be ambiguous — the legal description from the title deed is the only unambiguous identifier and is required to record a memorandum of option.",{"name":292,"plain_english":293,"sample_language":294,"common_mistake":295},"Option consideration","States the amount the buyer pays to the seller for granting the option, whether it is refundable, and how it is applied to the purchase price if exercised.","In consideration of [AMOUNT] ('Option Fee') paid by Buyer to Seller upon execution of this Agreement, Seller grants Buyer the exclusive option described herein. The Option Fee is non-refundable if the option is not exercised and shall be credited toward the Purchase Price at closing if the option is exercised.","Setting the option consideration at zero or one dollar to avoid paying anything upfront. Nominal consideration weakens enforceability in many jurisdictions — courts may treat the agreement as an unenforceable offer to sell rather than a binding option.",{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Option period and expiration","Defines the start and end dates of the option window, states that time is of the essence, and confirms what happens if the buyer does not exercise before expiration.","The option period commences on [START DATE] and expires at 5:00 PM local time on [EXPIRATION DATE] ('Option Period'). Time is of the essence with respect to all dates in this Agreement. If Buyer does not exercise the option on or before the expiration date, this Agreement terminates automatically and Seller retains the Option Fee.","Omitting a 'time is of the essence' clause. Without it, courts may allow a buyer to exercise the option days or weeks late on equitable grounds, defeating the seller's ability to re-list or negotiate with other parties.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Exercise of option procedure","Specifies exactly how the buyer must notify the seller to exercise the option — form of notice, delivery method, and who must receive it — to trigger the purchase obligation.","Buyer may exercise this option by delivering written notice to Seller at [SELLER ADDRESS / EMAIL] on or before the expiration date. Exercise by email is effective upon confirmed receipt. Exercise by certified mail is effective upon deposit with the postal carrier.","Allowing verbal exercise of the option. A verbal notice creates he-said-she-said disputes about whether and when the option was exercised; written notice with a timestamp protects both parties.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"Purchase price and payment terms","States the fixed purchase price agreed at the time the option is signed, the deposit due upon exercise, and the balance payable at closing.","If Buyer exercises this option, the purchase price for the Property shall be [PURCHASE PRICE] ('Purchase Price'). Upon exercise, Buyer shall deposit [DEPOSIT AMOUNT] into escrow within [X] business days. The balance of the Purchase Price shall be paid at closing in immediately available funds.","Leaving the purchase price subject to reappraisal at the time of exercise. A re-appraisal mechanism converts the option into an agreement to agree — which is not enforceable — and eliminates the buyer's price certainty.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Conditions precedent to closing","Lists specific events that must occur — such as financing approval, zoning change, or satisfactory inspection — before the buyer is obligated to close the purchase after exercising the option.","Buyer's obligation to close is contingent upon: (a) Buyer obtaining financing on terms acceptable to Buyer on or before [DATE]; (b) the Property receiving [ZONING DESIGNATION] zoning approval from [AUTHORITY]; and (c) a satisfactory Phase I environmental assessment. If any condition is not satisfied by [DATE], Buyer may terminate this Agreement by written notice.","Including conditions precedent that are entirely within the buyer's control without a deadline. Open-ended conditions let a buyer hold a property indefinitely without closing — courts may treat this as a right to walk away for any reason at any time, undermining the seller.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Title and encumbrances","Requires the seller to convey marketable title free of undisclosed encumbrances at closing, and defines the buyer's remedies if title is defective.","At closing, Seller shall convey marketable fee simple title to the Property, free and clear of all liens, encumbrances, and restrictions except those listed in Schedule A. If title is not marketable and Seller cannot cure title defects within [30] days of notice, Buyer may terminate this Agreement and receive a refund of the Option Fee.","No title review period before the option period expires. A buyer who exercises without ordering a title search may discover defects only after becoming contractually obligated to close.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Seller's representations and warranties","The seller confirms key facts about the property — no undisclosed litigation, no environmental violations, no material defects known to seller — that the buyer is relying on.","Seller represents and warrants that: (a) Seller has full authority to grant this option and sell the Property; (b) there is no pending or threatened litigation affecting the Property; (c) Seller has no actual knowledge of any environmental contamination on the Property; and (d) all property taxes are current as of the date of this Agreement.","Omitting seller representations entirely on the assumption that real estate is always sold 'as-is.' An 'as-is' clause limits physical condition warranties but does not excuse non-disclosure of known material defects or title issues, which carry separate legal liability.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Default and remedies","States what happens if the seller defaults — by selling to a third party or failing to close — and what the buyer's remedies are, including specific performance or return of funds.","If Seller defaults by failing to convey title at closing or by granting an inconsistent interest to a third party, Buyer may, at Buyer's election: (a) seek specific performance of this Agreement; or (b) terminate this Agreement and recover the Option Fee plus [LIQUIDATED DAMAGES AMOUNT]. Buyer's remedies are cumulative and not exclusive.","Relying solely on a liquidated damages clause for seller default without preserving specific performance as an alternative remedy. For unique real estate, money damages may be inadequate — a buyer who wants that specific property needs the right to compel the sale.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Governing law and recording","Specifies which jurisdiction's law governs the agreement, where disputes are resolved, and whether a memorandum of option will be recorded against the property title.","This Agreement is governed by the laws of [STATE / PROVINCE]. Buyer may record a Memorandum of Option in the real property records of [COUNTY / REGISTRY] to provide public notice of Buyer's interest. Seller shall cooperate in executing any instrument reasonably required for such recording.","Not recording a memorandum of option. An unrecorded option is vulnerable to a bona fide purchaser who buys the property without knowledge of the option — in most jurisdictions, the BFP's interest wins.",[337,342,347,352,357,362,367,372],{"step":338,"title":339,"description":340,"tip":341},1,"Identify parties with their full legal names","Enter each party's full legal name — the registered entity name for companies or legal name for individuals — along with addresses and contact information. For corporate entities, confirm the signing officer has authority to bind the entity.","Request a certificate of good standing for corporate sellers before signing — it confirms the entity exists and is authorized to transact in the jurisdiction.",{"step":343,"title":344,"description":345,"tip":346},2,"Describe the property precisely","Pull the exact legal description from the current title deed or land registry record — not just the street address. Include the parcel or folio number and the county or municipality for recording purposes.","A single typographical error in a legal description can invalidate a recorded instrument. Copy and paste directly from the deed rather than retyping.",{"step":348,"title":349,"description":350,"tip":351},3,"Set the option consideration and its treatment","Agree on a meaningful option fee — typically 1–5% of the purchase price for commercial deals — and specify whether it is refundable if conditions are not met and how it credits toward the purchase price at closing.","In commercial deals, a higher option fee signals genuine buyer intent and reduces the seller's incentive to negotiate with competing parties during the option period.",{"step":353,"title":354,"description":355,"tip":356},4,"Define the option period with a specific expiration date and time","Enter the exact start date, expiration date, and time zone. Add 'time is of the essence' language. Build in enough time for financing, due diligence, or regulatory approvals — but not so long that the seller is locked out of the market indefinitely.","For commercial development projects requiring rezoning, a 12–18 month option period with one extension right (at an additional fee) is common. Residential options rarely exceed 90 days.",{"step":358,"title":359,"description":360,"tip":361},5,"State the purchase price as a fixed amount","Enter the agreed purchase price as a specific dollar figure. Confirm that no reappraisal mechanism applies and that the price is fixed regardless of market movement during the option period.","If the parties want price flexibility, consider a formula tied to an index (e.g., CPI adjustment) rather than reappraisal — a formula is deterministic and enforceable; a reappraisal mechanism is not.",{"step":363,"title":364,"description":365,"tip":366},6,"List all conditions precedent with deadlines","Identify every condition the buyer needs to satisfy — financing, inspections, approvals — and assign a specific deadline for each. Include the notice procedure for waiving or declaring conditions unsatisfied.","Each condition should have its own deadline rather than a single omnibus closing deadline — this allows the parties to track progress on each item independently.",{"step":368,"title":369,"description":370,"tip":371},7,"Confirm recording and notice provisions","Decide whether a memorandum of option will be recorded against the property title. If yes, attach a form memorandum as an exhibit and confirm both parties will execute it at signing.","Recording protects the buyer against a fraudulent or inadvertent double-sale. It costs a nominal filing fee and takes less than a day in most jurisdictions.",{"step":373,"title":374,"description":375,"tip":376},8,"Execute before distributing the option consideration","Both parties should sign the agreement — and any authorized officer certificate if a corporate party is involved — before the buyer transfers the option fee. Confirm the signing date matches the agreement date.","Use a countersigned written acknowledgment of receipt of the option fee to eliminate disputes about whether consideration was actually paid.",[378,382,386,390,394,398],{"mistake":379,"why_it_matters":380,"fix":381},"Using a street address instead of a legal property description","A street address is not a legally sufficient property description in most jurisdictions and will cause a recorded memorandum to be rejected or rendered unenforceable against third parties.","Pull the exact legal description from the current deed or title certificate and reproduce it verbatim in the agreement and any memorandum.",{"mistake":383,"why_it_matters":384,"fix":385},"Setting nominal option consideration of one dollar","Courts in several jurisdictions have treated nominal consideration as a signal that no real bargain was struck, converting the option into an unenforceable offer that the seller can revoke at any time.","Pay a commercially meaningful option fee — at minimum a few hundred dollars for residential deals, and 1–3% of the purchase price for commercial transactions.",{"mistake":387,"why_it_matters":388,"fix":389},"Omitting 'time is of the essence' from the option period","Without this clause, a buyer who misses the expiration date may argue for equitable relief, keeping the seller's property tied up in litigation while the seller cannot transact with anyone else.","Include explicit 'time is of the essence' language next to every deadline in the agreement, including the exercise date and the closing date.",{"mistake":391,"why_it_matters":392,"fix":393},"Failing to record a memorandum of option","An unrecorded option is invisible to third parties. A seller who fraudulently or negligently sells to a second buyer may defeat the first buyer's interest in jurisdictions that protect bona fide purchasers without notice.","Prepare a short memorandum of option and record it in the applicable land registry or county recorder's office immediately after signing.",{"mistake":395,"why_it_matters":396,"fix":397},"Leaving conditions precedent open-ended with no deadline","An indefinite condition lets the buyer hold the property off-market for months or years, effectively converting the option into a free lock-up with no obligation to ever close.","Assign a specific calendar date to every condition precedent and include a mechanism for the buyer to formally waive or declare each condition unsatisfied.",{"mistake":399,"why_it_matters":400,"fix":401},"Preserving specific performance as the buyer's only default remedy","If specific performance is the sole remedy and the seller has already transferred title to a third party, the buyer may be left with an unenforceable judgment against a party who no longer owns the property.","Draft default remedies as cumulative — specific performance, return of option consideration, and liquidated damages — so the buyer can elect the most practical remedy given the circumstances.",[403,406,409,412,415,418,421,424,427],{"question":404,"answer":405},"What is an option to purchase real estate property?","An option to purchase real estate property is a binding contract that gives a buyer the exclusive right — but not the obligation — to purchase a specific property at a fixed price within a set time period. The buyer pays an upfront option fee for this right. If the buyer exercises the option, the seller must sell at the agreed price. If the buyer does not exercise, the option expires and the seller typically retains the fee.\n",{"question":407,"answer":408},"What is the difference between an option to purchase and a purchase agreement?","A purchase agreement creates a mutual obligation — both parties must complete the transaction once signed, subject to any contingencies. An option to purchase gives the buyer a unilateral right to buy but imposes no obligation to do so. The seller is bound to sell if the buyer exercises; the buyer is free to walk away, forfeiting only the option fee. Options are used when the buyer needs time before committing to a full purchase.\n",{"question":410,"answer":411},"How much should the option consideration be?","There is no universal standard, but commercially meaningful consideration is important for enforceability. Residential options typically range from $1,000 to 5% of the purchase price. Commercial and development options commonly run 1–5% of the purchase price. The option fee is often credited toward the purchase price at closing if exercised, making it effectively an early deposit rather than a sunk cost.\n",{"question":413,"answer":414},"Can a seller sell the property to someone else during the option period?","No. Once a valid option agreement is signed, the seller is contractually prohibited from selling the property to any other party during the option period. A seller who does so is in material default and faces remedies including specific performance and damages. Recording a memorandum of option in the public land records provides notice to potential third-party buyers, significantly reducing the risk of a fraudulent double-sale.\n",{"question":416,"answer":417},"What happens if the buyer does not exercise the option before it expires?","If the buyer does not deliver written notice of exercise before the expiration date and time, the option terminates automatically. The seller retains the option fee as compensation for holding the property off-market. The buyer has no further rights to the property. This is why 'time is of the essence' language is critical — it eliminates any argument that a late exercise should be accepted on equitable grounds.\n",{"question":419,"answer":420},"Does an option to purchase need to be recorded?","Recording is not legally required for the option to be valid between the parties, but it is strongly recommended to protect the buyer's interest against third parties. In most jurisdictions, a bona fide purchaser who buys without notice of a prior unrecorded interest takes free of that interest. Recording a short memorandum of option gives constructive notice to the world at a nominal cost and effectively eliminates this risk.\n",{"question":422,"answer":423},"What is a memorandum of option?","A memorandum of option is a short, publicly recorded document that identifies the parties, the property, and the existence and expiration date of the option agreement — without disclosing the full purchase price or all other terms. It is recorded in the county or land registry where the property is located to put third parties on notice that a buyer holds an option interest in the property. The full option agreement typically remains confidential between the parties.\n",{"question":425,"answer":426},"Is an option to purchase real estate enforceable?","An option to purchase is generally enforceable when it identifies the property with specificity, states a fixed or determinable purchase price, is supported by genuine consideration, and is signed by both parties. Enforceability varies by jurisdiction — California, for example, requires options on real property to meet the same writing requirements as sale agreements. Consider consulting a real estate attorney to confirm enforceability in the specific jurisdiction where the property is located.\n",{"question":428,"answer":429},"Can the option period be extended?","Yes, if both parties agree in writing before the original expiration date. Many commercial option agreements include one or more extension rights — for an additional fee — that the buyer can exercise unilaterally. An extension negotiated after the option has already expired requires new consideration and, effectively, a new option agreement, since the original rights have already lapsed.\n",[431,435,439,443],{"industry":432,"icon_asset_id":433,"specifics":434},"Commercial real estate development","industry-construction","Developers option land for 12–24 months while obtaining rezoning, environmental clearance, and construction financing before committing to a full purchase.",{"industry":436,"icon_asset_id":437,"specifics":438},"Retail and franchise","industry-retail","Franchise operators and national retailers option sites in target markets while awaiting corporate real estate committee approval and lease or purchase financing.",{"industry":440,"icon_asset_id":441,"specifics":442},"Agricultural and rural land","industry-manufacturing","Buyers option farmland or timber tracts while conducting soil testing, mineral rights review, and water rights due diligence before committing to acquisition.",{"industry":444,"icon_asset_id":445,"specifics":446},"Residential lease-to-own","industry-professional-services","Tenants negotiating a purchase option within a residential lease use this structure to lock in a purchase price while building credit or saving for a down payment.",[448,450,453,456],{"vs":59,"vs_template_id":233,"summary":449},"A real estate purchase agreement creates an immediate bilateral obligation to complete the sale, subject to negotiated contingencies. An option to purchase gives only the buyer a unilateral right to buy — the seller cannot back out, but the buyer can walk away by forfeiting the option fee. Use an option when the buyer needs time or flexibility before committing; use a purchase agreement when both parties are ready to transact.",{"vs":102,"vs_template_id":451,"summary":452},"lease-to-own-agreement-D13275","A lease-to-own agreement combines an active rental relationship with a future purchase option, typically applying a portion of each month's rent toward the purchase price. A standalone option to purchase has no rental component and is used independently of any tenancy. Lease-to-own is common in residential contexts; standalone options are standard in commercial and investment real estate.",{"vs":236,"vs_template_id":454,"summary":455},"","A right of first refusal gives a party the right to match any third-party offer before the seller accepts it — the price is not fixed in advance. An option to purchase sets a specific price and timeline upfront, giving the buyer certainty regardless of what the market does. Options provide stronger buyer protection; rights of first refusal give sellers more flexibility in pricing.",{"vs":116,"vs_template_id":457,"summary":458},"commercial-lease-agreement-D1178","A commercial lease agreement governs the ongoing rental of property without any obligation or right to purchase. An option to purchase may be included as a clause within a commercial lease or executed as a standalone document. When a tenant wants the right to buy the leased property in the future, a separate option agreement — or an option clause added to the lease — is required alongside the rental terms.",{"use_template":460,"template_plus_review":464,"custom_drafted":468},{"best_for":461,"cost":462,"time":463},"Straightforward residential or small commercial options between parties who have already agreed on price and terms","Free","30–60 minutes",{"best_for":465,"cost":466,"time":467},"Commercial property options, development land deals, or any transaction exceeding $250,000","$400–$800 for a real estate attorney review","2–5 days",{"best_for":469,"cost":470,"time":471},"Complex development options requiring rezoning conditions, multi-party structures, or cross-border transactions","$1,500–$5,000+","1–3 weeks",[473,478,483,488],{"code":474,"name":475,"flag_asset_id":476,"note":477},"us","United States","flag-us","Options on real property must generally satisfy the Statute of Frauds — a signed writing describing the property and the price is required for enforceability. California imposes additional requirements under Civil Code §1624 and limits non-refundable option fees in residential lease-option contexts. In some states, recording a memorandum of option is essential to preserve priority against subsequent purchasers under race-notice recording statutes.",{"code":479,"name":480,"flag_asset_id":481,"note":482},"ca","Canada","flag-ca","Options to purchase real property must be in writing and signed to satisfy provincial Statute of Frauds equivalents in all provinces. In Ontario, the legal description must conform to the Land Titles Act. In Quebec, the option (promesse de vente) is governed by the Civil Code of Quebec and may be enforceable for up to five years. Recording (registration) at the provincial land registry is strongly recommended to protect priority.",{"code":484,"name":485,"flag_asset_id":486,"note":487},"uk","United Kingdom","flag-uk","Under the Law of Property (Miscellaneous Provisions) Act 1989, contracts for the sale or other disposition of an interest in land must be in writing, incorporate all agreed terms, and be signed by both parties. Options must be registered against the title at HM Land Registry to bind third parties — an unregistered option is not binding on a buyer of the freehold. Stamp Duty Land Tax may be triggered both on grant and on exercise of the option.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"eu","European Union","flag-eu","Real estate option requirements vary significantly by member state. In Germany (Vorkaufsrecht), a notarized option agreement is generally required for land transactions. French law (promesse unilatérale de vente) requires registration within 10 days to be enforceable against third parties. Spanish law requires a public deed (escritura pública) for registration. GDPR considerations apply when personal data of parties is processed in connection with the transaction.",[233,226,240,247,494,495,496,494,497,498,499,500],"offer-to-purchase-real-estate-property-D1190","non-disclosure-agreement-nda-D12692","checklist-customer-due-diligence-D13916","land-purchase-agreement-D13424","property-management-agreement-D1196","escrow-agreement-D1173","assignment-agreement-D12542",{"emit_how_to":191,"emit_defined_term":191},{"primary_folder":139,"secondary_folder":503,"document_type":504,"industry":505,"business_stage":506,"tags":507,"confidence":511},"real-estate-and-leases","agreement","real-estate","all-stages",[505,508,509,510],"contract","option-to-purchase","property-agreement",0.95,"\u003Ch2>What is an Option To Purchase Real Estate Property?\u003C/h2>\n\u003Cp>An \u003Cstrong>Option To Purchase Real Estate Property\u003C/strong> is a legally binding contract that grants a buyer the exclusive right — but not the obligation — to purchase a specific parcel of real estate at a predetermined price within a defined period of time. In exchange for this right, the buyer pays the seller an upfront option fee, which the seller keeps if the option is never exercised. If the buyer does elect to proceed, the seller is contractually bound to complete the sale on the agreed terms. The option functions as a time-limited lock on both the property and the price, allowing the buyer to conduct due diligence, arrange financing, or secure regulatory approvals without the risk that the seller will sell to someone else or raise the price in the interim.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written option agreement, a buyer who invests time and money in due diligence — commissioning surveys, environmental assessments, or rezoning applications — has no legal protection against the seller withdrawing, raising the price, or accepting a competing offer at any point before a purchase agreement is signed. The consequences are concrete: sunk costs with no recourse, lost development opportunities, and financing relationships damaged by a failed transaction. For sellers, a properly structured option provides certainty about the transaction timeline, delivers upfront consideration regardless of outcome, and creates an enforceable obligation that supports their own downstream planning. This template gives both parties a structured, enforceable starting point that protects the buyer's investment in pre-purchase activities and holds the seller to the agreed terms from day one.\u003C/p>\n",1781185929154]