All Sample Agreements Are for Informational and Instructional Purposes Only

Please note that I have included sample real estate option, memorandum of real estate option, and purchase agreements in this book for informational and instructional purposes only. For specific information on how to properly document a real estate option transaction in your state, please follow my advice and consult with a board-certified real estate attorney who is licensed to practice law in your state. A sample real estate option agreement follows.

FORM 14.1 Sample Real Estate Option Agreement

This real estate option is given on this ninth day of July 2005, by David D. Jones, a single man, known hereinafter as the Optionor, to Donald S. Reed, a single man, known hereinafter as the Optionee. Optionor, in consideration of the sum of ten thousand dollars ($10,000), paid by Optionee to Optionor, grants to Optionee the exclusive, unrestricted, and irrevocable right and option to purchase, on the following terms and conditions, that certain real property known as: 45735 Hillsborough Avenue, Tampa, Florida 33603, and legally described as: Lots 47, 48, and 49 of Carters subdivision according to map or plat thereof as recorded in plat book 69, page 89, of the public records of Hillsborough County, Florida.

In the event Optionee shall exercise the option, the consideration paid for the option shall be applied against the purchase price. If Optionee does not exercise the option, Optionor shall be entitled to retain the consideration paid for the option as complete compensation for the option, and no portion thereof shall be refunded to Optionee.

The purchase price of the property is three hundred and fifty thousand dollars ($350,000), which amount will be paid if Optionee elects to exercise this real estate option.

If this real estate option is exercised, Optionor, as Seller, and Optionee or assigns, as Buyer, shall perform the Purchase Agreement attached hereto as addendum one (1).

This option is effective immediately and will expire at 12:01 a.m. on July 8, 2006.

(continued)

FORM 14.1 Sample Real Estate Option Agreement (Continued)

Optionee or assigns may exercise this real estate option only by delivering a written notice thereof, signed by Optionee, or assigns, to Optionor before the time herein set for expiration. Any such notice must be sent by United States Postal Service Certified Mail, return receipt requested, or personal delivery to the post office address of Optionor, which is 5300 West Oklahoma Avenue, Tampa, Florida 33629.

Optionee or assigns shall have the right to extend the option period provided herein for two additional periods of twelve (12) months each by giving written notice thereof to Optionor, and upon payment to Optionor the sum of four thousand five hundred dollars ($4,500) for the first extension period, and the sum of four thousand five hundred dollars ($4,500) for the second extension period, provided the notice is given and the sums of money are paid in full to Optionor prior to the expiration of the option period, or extension thereof immediately preceding the additional extension period requested.

If Optionee or assigns do not exercise this option in accordance with its terms and within the option period and any extension thereof, this option and all rights of Optionee or assigns shall automatically and immediately terminate without notice and Optionor shall have no further obligation to Optionee.

Optionor shall not further encumber the optioned property during the period of the option, nor shall any existing lease be extended, or any new lease entered into without Optionee's express written consent. In the event any lien or other encumbrance is placed upon the property during the option period, Optionor shall immediately cause same to be removed at Optionor's sole expense. Failure to remove the encumbrance within thirty (30) days after notice is given to Optionor by Optionee shall constitute a breach of this option agreement, and Optionee shall have all remedies for damages provided by law, or in equity, or at the sole option of Optionee. Optionee may elect to require Optionor to return all consideration paid to Optionor plus eighteen percent (18%) interest thereon and cancel this Real Estate Option Agreement, and in such event, neither party shall have any further obligation hereunder.

Optionor shall maintain the property during the period of this agreement in the same condition it existed as of the date of this agreement, ordinary wear and tear excepted.

In the event that during the option period, all or any substantial portion of the property shall be taken for condemnation, or under the right of eminent domain, Optionee shall be entitled to a full refund of all consideration paid to Optionor, if Optionee fails to exercise the option. In addition, Optionor shall reimburse Optionee for any expense reasonably incurred by Optionee in examining title to the property, and other costs incidental thereto.

In the event of loss or damage by storm, fire, flood, earthquake, or terrorist attack to the improvements now existing on the premises of the property, during the option period, Optionee shall have the right to rescind this Real Estate Option Agreement, and shall be entitled to a full refund of all consideration paid to Optionor. In addition, Optionor shall reimburse Optionee for any expense reasonably incurred by Optionee in examining title to the property, and other costs incidental thereto.

Optionee and Optionee's assigns, agents, and employees shall have the unfettered right to enter onto the property during the period of the option to make improvements, show said property, and carry out other such work that may be necessary.

Prepare Your Option Agreement So That You Are Fully Protected 165 FORM 14.1 Sample Real Estate Option Agreement (Continued)

Optionee and Optionee's assigns, agents, and employees shall have the unfettered right to enter onto the property during the period of the option to make improvements, show said property, and carry out other such work that may be necessary.

Optionee or assigns shall have the unfettered right to act in the name of Optionor to apply for any regulatory, zoning, or property use variance that Optionee deems necessary for optionee's future use of the property.

Optionor agrees that should Optionee or assigns exercise the real estate option within the specified option period and subsequently fail to close the purchase in accordance with the terms of this Real Estate Option Agreement or for any reason other than failure of Optionor to tender marketable title, Optionor shall retain the total consideration paid for the option as full and complete liquidated damages, and neither party shall have any further responsibility under this Real Estate Option Agreement. The parties agree that their relationship under this Real Estate Option Agreement is that of Optionor and Optionee and that it shall not be deemed or interpreted to create between them the relationship of principal and agent, employer and employee, seller and purchaser, or partners.

All rights of the Optionee under this Real Estate Option Agreement are fully assignable without the consent of the Optionor.

Optionor and Optionee shall not record a copy of this Real Estate Option Agreement in the official public records, but in lieu thereof, and for the purpose of giving public notice, Optionor and Optionee agree to execute and acknowledge a Memorandum of Real Estate Option Agreement suitable for recordation in the official public records of Hillsborough County, Florida.

All provisions of this Real Estate Option Agreement shall extend to, bind, and inure to the benefit of heirs, executors, personal representatives, successors, and assigns of Optionor and Optionee.

Optionor and Optionee or assigns authorize Mr. John B. Good, Attorney at Law, to act as Escrow Agent to hold the Deed and Purchase Agreement signed by Optionor during the option period. If Optionee or assigns fail to exercise this real estate option in accordance with the terms of this Real Estate Option Agreement, Escrow Agent shall immediately return the signed Deed and Purchase Agreement to Optionor.

IN WITNESS WHEREOF, Optionor and Optionee have set their hands the date aforesaid.

David D. Jones Donald S. Reed

Optionor Optionee

Robert B. Big Sally M. Little

Witness Witness

Copyright Thomas J. Lucier 2005. To customize this document, download it to your hard drive from Thomas J. Lucier's web site at www.thomaslucier.com/optionforms.html. The document can then be opened, edited, and printed using Microsoft Word or another popular word processing application.

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