Bhe best way to protect your position as optionee during the option period is to have a well-written real estate option agreement, which clearly defines in plain English, without the usual legal gob-bledygook, all of the terms, conditions, and provisions of the agreement, along with the rights and responsibilities of both the optionee and the optionor. The problem that I have with standard boilerplate real estate option agreements is that they are generally written in favor of the optionor and provide little or no protection for the rights of the optionee. For example, most run-of-the-mill option agreements never cover what happens to the option consideration fee paid by the optionee in the event that:
1. The property under option is condemned via eminent domain.
2. The property under option is destroyed by fire, storm, flood, earthquake, or terrorist attack.
3. The optionor defaults on the agreement by refusing to sell the property under option after the real estate option has been exercised.
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