How To Get an Option To Purchase Agreement in 5 Steps!

Standardized Legal Documents How To Get an Option To Purchase Agreement in 5 Steps!

Learn To Write an Option To Purchase Agreement Like a Pro

Interested in a property but not ready to commit? You don’t have to make a decision yet! 

We will guide you through the process of drafting a valid option to purchase agreement, a legal document perfect for your situation. 

Is the Option To Purchase Agreement Right for You?

An option to purchase agreement is a legally binding contract between a buyer and a seller. The contract gives the buyer the option to purchase a property from the seller at an agreed-upon price but doesn’t oblige him or her to do so. The agreement is mostly used for real estate but also stocks and foreign currency.

You can also use the option to purchase agreement as a tenant who’s looking to buy a property in the future. You would have to enter both a standard lease agreement and an option to purchase agreement. A part of your monthly rent payments would be used as a deposit until you decide to buy the property. 

Writing an Option To Purchase Agreement in Five Steps

Include all the sections from the list provided below to draft your option to purchase agreement perfectly:

  1. Buyer and seller details
  2. Obligations
  3. Property description
  4. Option fee
  5. Option period

Buyer and Seller Details

The first section has to include the details about both the buyer and the seller, such as:

  • Full names
  • Addresses
  • Contact numbers
  • IC (integrated circuit) numbers

If there are additional details that you think should be included, feel free to write them down. You can also add the effective date and the start and end date of the agreement.

Obligations

The duties and obligations of the buyer and seller need to be clearly spelled out to avoid any confusion in the future.

Keep in mind that omitting a certain rule or responsibility can result in misunderstandings later on, so it’s important to think hard about what you want to mention.

Property Description

A clear description of the property should include details like:

  • Full address
  • The floor area where the property is located
  • The purchase price

You can also disclose other info, such as whether the property is furnished or not.

Option Fee

An important element of the option to purchase agreement is an option fee, which is the amount that the buyer pays to reserve the property. The sellers look at the fee as a deposit and refrain from searching for other buyers or selling the property to another party.

The option fee is standardly 1% of the purchase price, but you should discuss this with the other party.

Option Period

The option period normally lasts for two weeks, but that can be negotiated. Include the specifics about the option period that you discussed, such as the duration and what happens once the option period expires.

Use DoNotPay To Draft Contracts Effortlessly

If you want to avoid writing legal documents on your own or spending money on lawyers, DoNotPay is the way to go! We can generate a variety of agreements for you in only a few clicks! This is how:

  1. Sign up for DoNotPay
  2. Provide the name of the agreement you want
  3. Supply additional info about you and the agreement

We will draft your document instantly! All that’s left is for you and the other party is to sign it, and you’re good to go!

Certain legal documents must be notarized, such as wills and trusts. Contracts often don’t require notarization, but having them notarized always helps.

Once you have a notary sign and stamp your document, it becomes easier to offer it as proof in court and resolve certain legal issues with it. DoNotPay can connect you with a remote notary and help you get your documents notarized online effortlessly!

Drawing Up Legal Docs Has Never Been Easier

DoNotPay can draft certain legal documents in your stead, but that is not all! If you need help with a contract that our app can’t generate for you, we got you covered!

We offer you step-by-step guides on creating various other agreements as well. Check out some of the documents we can draft for you and others you can make by yourself with our simplified guides:

Contracts We Draft for YouContracts We Offer Step-by-Step Guides For

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