After you have exercised your real estate option, you must purchase the property under option or assign the agreement to a third party. And if you followed my advice in Chapter 16, you should already have a purchase agreement signed by the optionor in escrow. Your purchase agreement should have been included as an addendum to your option agreement. If you did not have the optionor sign a separate purchase agreement, you should have included a clause in your option agreement stating that it would automatically ripen into a purchase agreement once the option was exercised. Either way, you and the optionor should have already worked out exactly how the sale of the property is going to take place.
Was this article helpful?