What makes a notice valid?

A valid notice clearly identifies the agreement, cites the option clause, conveys unambiguous intent to exercise, states the effective date, and is delivered in the manner required by the contract.

Can I send the notice electronically?

Yes if the parties consent and the transaction is not an excluded category; electronic notices are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted.

Is notarization or witness required?

Most notices do not require notarization, but certain instruments related to real property transfer may trigger notary or witness rules depending on state law and county recording practices.

How do I prove delivery and receipt?

Use contract-prescribed delivery methods, obtain signed acknowledgments, certified mail receipts, or retain eSignature audit trails that include timestamps, IP addresses, and signer attribution.

Can I revoke an exercised option?

Revocation depends on the agreement terms; some contracts permit withdrawal before acceptance while others make exercise irrevocable once properly delivered and received.

How should records be stored?

Retain the signed notice, attachments, delivery receipts, and audit logs for the full contract term plus applicable retention periods (see IRS, HIPAA, and state rules).

Electronic Signature
Templates
Other
Notice of Intention to Exercise Option

Notice of Intention to Exercise Option

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Notice of Intention to Exercise Option Is and when it applies

A Notice of Intention to Exercise Option is a formal written notification used to communicate an option holder’s decision to exercise a contractual right under an option clause, lease option, purchase option, or similar agreement. The notice identifies the agreement, references the option clause, states the option holder’s intent, specifies the effective exercise date, and requests required performance (for example, closing, transfer, or payment). In the United States the form may be delivered electronically where the parties consent and the transaction is not an excluded category under ESIGN (15 U.S.C. §7001) or applicable state law.

Why a clear notice matters to preserve rights and reduce disputes

A properly drafted notice documents intent, triggers contractual timelines, and creates a record that can prevent misunderstandings or forfeiture of rights.

Who typically prepares and receives this notice

Parties and representatives commonly involved in exercising contractual options include the option holder, the option grantor, and counsel or closing agents.

Option holders and buyers — Individuals or entities exercising purchase, lease, or renewal options under a contract or lease agreement.
Option grantors and lessors — Parties required to accept exercise, perform closing obligations, or prepare transfer documents.
Attorneys, title agents, closing agents — Professionals who prepare, review, or record notices and manage downstream steps.

Step-by-step: complete and deliver the Notice of Intention to Exercise Option

Follow these four core steps to prepare a clear, enforceable notice and ensure timely delivery to the correct recipient.

01

Review agreement: Confirm option clause, deadline, and required form of notice.
02

Prepare notice: Reference contract section, state effective date, and include required attachments.
03

Authenticate signer: Sign with authorized party; use acceptable eSignature or notarization if required.
04

Deliver & confirm: Send per contract directions and retain proof of receipt or acknowledgment.

Core elements to include in a professional notice

A concise, consistent structure reduces questions and supports enforceability when exercising an option.

Document Title

Use a clear title such as 'Notice of Intention to Exercise Option' and reference the underlying contract by name and date to ensure immediate identification by the recipient.

Parties

Identify both the option holder and option grantor with full legal names, business types, and contacts so the notice maps directly to the executed agreement.

Option Reference

Specify the contract section granting the option, include the original agreement date, and quote or cite the operative clause to avoid interpretive disputes.

Exercise Terms

State the election to exercise, the specific rights being claimed, any election of price or term options, and reference payment or performance obligations.

Delivery and Compliance

State the method of delivery used, request confirmation of receipt, and note any conditions precedent required before closing or transfer.

Acknowledgment

Include a signature line and request a written acknowledgment or countersignature to create a mutual record of exercise and acceptance.

Key security and compliance attributes to preserve validity

In-transit encryption: TLS 1.2/1.3

Data at rest: AES-256 encrypted storage

Audit trail: Complete IP/timestamp log

Regulatory compliance: ESIGN and UETA compliance

Healthcare controls: HIPAA BAA available

Access controls: Role-based signer permissions

Digital workflow settings for online completion

Configure authentication, required fields, and routing rules to match contractual delivery and evidentiary needs.

Field	Configuration
Authentication Method	Email link, SMS code, or stronger KBA where required
Template	Save a reusable template referencing agreement clause numbers
Routing Order	Set sequential signers or parallel review as contract requires
Notifications	Enable delivery receipts and signer reminders

How eSubmission typically flows for exercising an option

Electronic processing follows a predictable sequence from upload to final record; ensure each step meets contract delivery rules.

Upload document: Sender uploads the notice and relevant attachments.
Place fields: Add signature, date, and acknowledgement fields as required.
Send to recipient: Dispatch via contract-prescribed channel (email, portal, or courier).
Capture evidence: Retain signed copy and complete audit trail for records.

Delivery formats, integrations, and technical considerations

Choose file formats and delivery channels compatible with the recipient and any recording or title procedures.

File formats: PDF, Word DOCX, or secured PDF/A
Common integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Authentication options: Email, SMS code, KBA, or multi-factor

Critical deadlines and timing rules to observe

Respect contract timing precisely; many option clauses impose short notice windows and strict delivery methods that trigger acceptance or forfeiture.

Option exercise window:

Give notice within the exact period stated in the option clause.

Notice advance requirement:

Meet any advance notice days required before closing or performance.

Effective upon receipt:

If contract requires receipt, proof of delivery matters more than sending date.

Payment timing:

Match payment deadlines tied to exercise to avoid breach.

Recording timelines:

Record or file transfer documents promptly when required by law.

Key milestones from intent to final performance

Track milestones sequentially so each obligation is triggered and documented on schedule.

01

Decision made

Holder documents intent and prepares notice for delivery.

02

Notice delivered

Send per contract method and obtain proof of receipt.

03

Obligations triggered

Grantor prepares closing, transfer or payment steps as required.

04

Closing / recording

Complete transfer, payment, and any public filings or recordings.

Common mistakes that cause delays or disputes

Missing or misreading the precise option deadline in the underlying agreement, which can result in automatic forfeiture or a deemed rejection.
Failing to identify the correct contracting party or using an informal name instead of the legal entity, producing a notice that lacks enforceable attribution.
Submitting a notice without quoting the exact contract section or without required attachments, leading the counterparty to request clarification or to deny acceptance.
Using an improper delivery method or failing to retain proof of receipt, which undermines the notice’s evidentiary value in later disputes.

Potential consequences of an incorrect or late notice

Loss of option: Option may lapse and become unenforceable.

Breach damages: Counterparty may claim monetary damages.

Forfeiture of deposit: Earnest money or option fee can be forfeited.

Title defects: Improper recording can cloud title or delay transfer.

Litigation risk: Disputes can lead to costly litigation.

Regulatory exposure: Certain filings may trigger tax or compliance obligations.

Typical vendor pricing and capability snapshot for eSignature handling

Compare starting prices and core capability markers when selecting an eSignature provider for notices; signNow is listed first per platform comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about exercising an option

Answers to common questions about form content, delivery, electronic signatures, notarization, revocation, and recordkeeping.

Need help? Contact support

What makes a notice valid?
A valid notice clearly identifies the agreement, cites the option clause, conveys unambiguous intent to exercise, states the effective date, and is delivered in the manner required by the contract.
Can I send the notice electronically?
Yes if the parties consent and the transaction is not an excluded category; electronic notices are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted.
Is notarization or witness required?
Most notices do not require notarization, but certain instruments related to real property transfer may trigger notary or witness rules depending on state law and county recording practices.
How do I prove delivery and receipt?
Use contract-prescribed delivery methods, obtain signed acknowledgments, certified mail receipts, or retain eSignature audit trails that include timestamps, IP addresses, and signer attribution.
Can I revoke an exercised option?
Revocation depends on the agreement terms; some contracts permit withdrawal before acceptance while others make exercise irrevocable once properly delivered and received.
How should records be stored?
Retain the signed notice, attachments, delivery receipts, and audit logs for the full contract term plus applicable retention periods (see IRS, HIPAA, and state rules).

Explore Templates

Connecticut Power of Attorney Form Delaware Lease to Own Purchase Option Agreement Chapter 13 Forms Northern District of Illinois Delaware Relative Caregivers School Authorization Information Kansas Durable Power of Attorney Form Louisiana Resources Selected Guide to Legal Forms Research

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now