OfflineI am interested in using an Option to purchase instead of an agreement of sale. Several real estate investors in my area (New Jersey) have recommended recording an option agreement on the property to control it while trying to find an end buyer. If you cannot find a buyer, you do not exercise the option to purchase. Has anyone had any experience with Options?
I could not find an Option contract in the real estate forms section.
Any feedback would be appreciated!
__________________
ltrunell
An Option To Purchase is all I use when locking up a house. Here is the one I use with the contingencies included.
http://www.deangraziosi.com/ufiles/OptionContractforSaleandPurchase.pdf
Then you file the Notice of Option at your county recorders office. It costs me $40 bucks to file. Each state is differnt though....
___________________________________________________________________
NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE
This NOTICE OF OPTION CONTRACT FOR SALE AND PURCHASE (the “Notice”) is made, executed and delivered as of the _____ day of ________________, 20___, by and between __________________________(“Seller”) and ______________________________(“Buyer”).
The Seller grants to the Buyer an Option to purchase the real estate as described below (the “Property”):
Property Address: __________________________________________________________________
City, State Zip: __________________________________________________________________
Parcel #: __________________________________________________________________
The term of this Option Contract is from the _______ day of ______________, 20___ and expires on the _______ day of __________________, 20___.
The Buyer can execute the Option Contract at any time during the Option Period.
The Option Contract may be terminated and this Notice released and satisfied of record by execution and recording of a Release of Option Contract signed only by the Buyer.
The Option Contract for Sale and Purchase contains the following Representations and Warranties:
“6. REPRESENTATIONS AND WARRANTIES: To induce the BUYER to enter into this Agreement, the SELLER makes the following representations, warranties, and covenants.
E. SELLER understands that this transaction is contingent upon buyer being able to assign/sell for a profit to an end buyer.
F. SELLER hereby grants the Buyer and or assigns and their representatives all of the necessary rights to immediately list for sale, market, negotiate and enter into a contract to lease or sell immediately to a third party for a profit. All documentation in connection with the foregoing will be made available at the request of all Lenders, Sellers, and Buyers involved in the transaction.”
G. SELLER agrees contract is contingent upon suitable home inspection (BUYER’s choice.
See Exhibit A (Legal Description) attached
AS TO SELLER:
In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.
_____________________________________ ___________________________________
Seller Seller
__________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:
Before me, a Notary Public in and for said County, personally appeared the above named _____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.
In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.
______________________________
Notary Public
AS TO BUYER:
In witness whereof, we hereunto set our hand and seal, at _____________, in the County of ___________________, State of _______________, this _______ day of _____________, 20____.
_____________________________________ ___________________________________
Buyer Buyer
_____________________________________ ___________________________________
Witness #1 Witness #2 (Notary may be a witness)
State of __________________
County of ________________ ss:
Before me, a Notary Public in and for said County, personally appeared the above named ____________________________________________________ who acknowledged and declared that he did sign and seal the foregoing instrument and that the same is his free act and deed.
In testimony whereof, I have hereunto set my hand and official seal, at _________________, in the County of ___________________, State of ____________, this ______ day of _____________, 20___.
______________________________
Notary Public
This instrument prepared by: Grantor
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
On the above document...the part that says AS TO BUYER....there is one area that the 2 words BUYER ran together. I tried to fix it but it wouldn't let me.
The word Buyer is supposed to be UNDER the line like this....
______________________ ____________________
Buyer Buyer
______________________ _____________________
Witness #1 Witness #2 (Notary May Be A Witness)
"OK...it is not going to do it right here either...the words BUYER and the Words Witness #1 and Witness #2 are each supposed to have a line above for each person to sign on)
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"