Why a Straight Real Estate Option Agreement Is Not an Executory Contract

An executory contract is generally defined as: "a contract where both parties have an obligation to perform in the future." And state and federal courts nationwide have traditionally held the view that straight or naked real estate options are unilateral contracts, under which the obligation to perform rests solely on the op-tionor, while the optionee is under no obligation to do anything whatsoever. The only notable exception to this is when an option agreement is included in a federal bankruptcy petition and the optionee has notified the optionor of his or her intention to exercise the option prior to the bankruptcy petition being filed.

Was this article helpful?

0 0
Making Money by Investing in Real Estate

Making Money by Investing in Real Estate

Are You Ready to Discover the Astonishing Secrets of How to Make Massive Profits in Real Estate Investing? If So, Keep Reading to Find Out How You Can Have Your Very Own Outrageously Profitable Real Estate Investing Business in No Time at All!

Get My Free Ebook

Post a comment