Once you get into this business, you will very quickly realize that the biggest fear that every option buyer has is that somehow, the optionor will renege on his or her option agreement by refusing to sell the property after the option has been exercised. The only way that I know to overcome this fear factor is to follow my advice in Chapter 17 and have all of the property title transfer documents signed by the optionor and held in escrow by your real estate attorney or title or escrow agent during the option period. Please believe me when I tell you that it so much easier to sell a real estate option agreement when you can show prospective buyers signed and notarized copies of all the property title transfer documents that are needed to close on the purchase of the property under option. For example, when I assign or sell a real estate option to a third party, I prepare an option assignment package, which I give to the assignee or buyer, that includes copies of the following documents:
1. Joint escrow instructions.
2. Real estate option agreement.
3. Title search report.
4. Title insurance policy insuring the real estate option.
5. Addendum real estate purchase agreement stamped "Copy only."
6. Warranty or grant deed stamped "Copy only."
7. Buyer's HUD 1 Settlement Statement.
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