Are electronic signatures valid for these agreements?

Yes—electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are present.

When is notarization required?

Notarization is typically unnecessary for basic option contracts but may be required or recommended when the option affects real property rights or instruments to be recorded; check state deed rules and county recording requirements.

How should I document an exercise notice?

Follow the agreement’s specified method (e.g., certified mail, email with delivery receipt, or registered courier) and preserve proof of receipt and timestamp for dispute resolution and title purposes.

Can the agreement be amended electronically?

Yes—amendments are enforceable when signed with the same legal standard for electronic signatures; document the amendment date, parties, and integrate it into the original agreement record.

What if a party’s signature is challenged?

Maintain the audit trail (IP, timestamp, authentication method) and supporting evidence of authority; courts consider the totality of intent, attribution, and record integrity under ESIGN/UETA.

How long should I keep signed agreements?

Retain active agreements for their term plus several years; follow federal minima such as IRC §6501(a) for tax records and 45 CFR §164.530(j) for HIPAA-covered documents.

Electronic Signature
Templates
Legal
Legal Signed Option Agreement

Legal Signed Option Agreement

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LEGAL SIGNED OPTION AGREEMENT

This Option Agreement (the "Agreement") is made as of Day: Month: Year: by and between Optionor: with principal address , and Optionee: with principal address . Optionor and Optionee are each sometimes referred to herein as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Optionor is the legal and beneficial owner of certain real property or other assets described as: (the "Optioned Asset"); and

WHEREAS, Optionee desires to obtain, and Optionor is willing to grant, an exclusive option to purchase the Optioned Asset upon the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties intend that the grant and exercise of the option be governed by the terms of this Agreement and that any purchase closing be conducted in accordance with this Agreement.

NOW, THEREFORE

In consideration of the mutual covenants and other good and valuable consideration, the sufficiency of which is acknowledged, the Parties agree as follows:

1. GRANT OF OPTION

1.1 Grant. Optionor hereby grants to Optionee an exclusive, transferable (subject to Section 10), irrevocable option (the "Option") to purchase the Optioned Asset on the terms set forth herein during the Option Term. The Option is personal to Optionee unless assigned in accordance with this Agreement.

1.2 Consideration. In consideration for the grant of the Option, Optionee shall pay to Optionor the sum of (the "Option Consideration") upon execution of this Agreement. The Option Consideration shall be non-refundable except as expressly provided in this Agreement and shall be credited against the Purchase Price at Closing.

2. OPTION TERM; EXERCISE

2.1 Term. The Option shall commence on the date first written above and shall expire at 5:00 p.m. local time on (the "Option Term"). Time is of the essence in all respects.

2.2 Exercise. The Option may be exercised by Optionee delivering written notice of exercise (the "Exercise Notice") to Optionor in accordance with Section 9. The Exercise Notice must specify a proposed closing date no earlier than ten (10) Business Days and no later than sixty (60) Business Days after delivery of the Exercise Notice, except as otherwise agreed in writing.

3. PURCHASE PRICE; PAYMENT; CLOSING

3.1 Purchase Price. The aggregate purchase price for the Optioned Asset shall be (the "Purchase Price"), subject to prorations, credits and adjustments as provided in this Agreement.

3.2 Payment at Closing. At Closing, Optionee shall pay the Purchase Price by wire transfer of immediately available funds or by certified check, less the Option Consideration and any permitted credits. Closing shall occur on the Closing Date at a mutually agreeable location or by exchange of documents if permitted by law.

4. TITLE; CONVEYANCE; CLOSING CONDITIONS

4.1 Title. At Closing, Optionor shall convey good and marketable title to the Optioned Asset free and clear of all liens, encumbrances and adverse interests, except those recorded prior to the Effective Date and those specifically accepted in writing by Optionee. Conveyance shall be by deed or other appropriate conveyance document customary for the type of asset.

4.2 Closing Conditions. The obligations of each Party at Closing are subject to satisfaction of customary closing conditions, including delivery of instruments of transfer, payoff of liens agreed to be removed by Optionor, and absence of any injunction or legal prohibition preventing Closing.

5. REPRESENTATIONS AND WARRANTIES

5.1 Optionor Representations. Optionor represents and warrants to Optionee as of the Effective Date and as of Closing that: (a) Optionor has full corporate or individual power and authority to execute and deliver this Agreement and to perform its obligations hereunder; (b) the execution and delivery of this Agreement and performance will not violate any agreement or law; and (c) to Optionor's knowledge, there are no actions pending that would prevent conveyance of the Optioned Asset as contemplated.

5.2 Optionee Representations. Optionee represents and warrants that it has the authority to enter into this Agreement and that the person executing this Agreement on behalf of Optionee is duly authorized to bind Optionee.

6. COVENANTS; MAINTENANCE OF ASSET

6.1 Maintenance. During the Option Term, Optionor shall maintain the Optioned Asset in substantially the same condition as of the Effective Date, ordinary wear and tear excepted, and shall not commit or permit any waste or permit any liens to be placed on the Optioned Asset other than as disclosed in writing to Optionee.

6.2 Access and Inspection. Optionee shall have the right, upon reasonable prior notice and during normal business hours, to inspect the Optioned Asset and review records reasonably related to the Optioned Asset.

7. DEFAULT; REMEDIES

7.1 Default. A default occurs if a Party fails to perform any material obligation under this Agreement and such failure continues uncured for a period of thirty (30) days after written notice specifying the default; provided that if such default is not susceptible of cure within thirty (30) days, the cure period shall be extended so long as the defaulting Party commences cure within thirty (30) days and proceeds diligently to completion.

7.2 Remedies. Upon a default by Optionor, Optionee may seek specific performance, damages, or termination of this Agreement. Upon a default by Optionee, Optionor may retain the Option Consideration as liquidated damages and pursue additional remedies available at law or in equity. The Parties acknowledge that the Option Consideration is a reasonable estimate of the harm caused by a breach and not a penalty.

8. INDEMNIFICATION

8.1 Indemnity by Optionor. Optionor shall indemnify, defend and hold harmless Optionee from and against any and all losses, claims, liabilities and expenses arising out of any breach of Optionor's representations, warranties or covenants or from events occurring prior to Closing.

8.2 Indemnity by Optionee. Optionee shall indemnify Optionor for losses arising out of Optionee's breach of this Agreement or acts or omissions after the Effective Date and prior to Closing.

9. NOTICES

Notices to Optionor Notices to Optionee

9.1 Method. All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by nationally recognized overnight courier, or three (3) Business Days after deposit in the U.S. mail, postage prepaid, addressed to the addresses specified above or to such other address as a Party may designate by notice pursuant to this Section.

10. ASSIGNMENT

Neither Party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, however, Optionee may assign the Option to an affiliate or purchaser of substantially all of Optionee's assets without Optionor's consent upon prior written notice.

11. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. The Parties submit to the exclusive jurisdiction of the state and federal courts located in that State for disputes arising under this Agreement.

12. ENTIRE AGREEMENT; AMENDMENT; WAIVER

12.1 Entire Agreement. This Agreement, including any exhibits or schedules hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral.

12.2 Amendment; Waiver. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. No failure or delay by either Party in exercising any right shall operate as a waiver thereof.

13. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

14. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or electronic image shall be effective as original signatures.

15. MISCELLANEOUS

15.1 Construction. The headings in this Agreement are for convenience only and shall not affect interpretation. Wherever appropriate, the singular shall include the plural and vice versa.

15.2 Remedies Cumulative. Except as otherwise expressly provided, the remedies provided in this Agreement are cumulative and in addition to any other remedies available at law or in equity.

DISCLOSURES AND ADDITIONAL PROVISIONS

Additional Terms or Special Conditions Schedule of Exceptions, Liens or Existing Encumbrances (if any)

Optionor Printed Name:

By:

Date:

Optionee Printed Name:

By:

Date:

What a Legal Signed Option Agreement Is

A Legal Signed Option Agreement is a written contract in which an optionor grants an optionee the right, but not the obligation, to buy or lease specified property or assets at predetermined terms within a defined time frame. The agreement sets the option period, exercise conditions, consideration paid for the option, and procedures for giving notice of exercise. While commonly used in real estate and business transactions, the form can cover intellectual property, purchase rights, or exclusive negotiation periods. Properly executed signatures and clear dates are essential to avoid ambiguity about when rights attach.

Why a Signed Option Agreement Matters

A signed option creates a time-limited, enforceable right that preserves deal flexibility while allocating risk and cost. It gives the optionee certainty about price or terms and gives the optionor compensation for reserving those rights during the option period.

Who Commonly Prepares and Signs These Agreements

Each user should confirm authority to bind the entity and whether additional formalities (corporate resolutions, trustee approvals) are required before signing.

Real estate investors and brokers using options to secure purchase or lease rights during due diligence and financing.
Business buyers and sellers seeking limited-time exclusivity for acquisitions or intellectual property negotiations.
Developers and contractors reserving land or project rights while obtaining permits or financing.

Step-by-Step: How to Prepare and Sign the Agreement

Follow these core steps to produce a clear, enforceable option agreement and capture valid signatures.

01

Draft Terms: Define parties, property, price, period, and conditions.
02

Confirm Authority: Verify signatory capacity and attach approvals for entities.
03

Add Signature Blocks: Include printed names, titles, dates, and spaces for initials.
04

Execute and Distribute: All parties sign; provide each party a complete signed copy.

How Execution and Exercise Typically Flow

A clear execution and exercise workflow reduces disputes; the list below describes common practical steps and evidence produced at each point.

Execution: Parties sign and date the agreement, generating a signed original or electronic record.
Notice of Exercise: Optionee provides written notice per agreement, often by certified mail or designated delivery method.
Payment: Optionee pays the exercise price under specified terms; escrow instructions are often used.
Closing or Transfer: Parties complete closing steps, prepare transfer documents, and record if required.

Sample Digital Workflow Settings for Electronic Execution

Configure a reproducible signing workflow to capture intent, attribution, and retention for electronic execution.

Field	Configuration
Signature Field	Required; signer types or taps to sign.
Date Field	Auto-populate with signing timestamp.
Authentication	Email with optional SMS code or stronger MFA.
Audit Trail	Capture IP, timestamps, and action history.

Technical Points for eSigning and eSubmission

Ensure the platform preserves a tamper-evident copy and retains records in a format reproducible for courts or regulators.

File Types: PDF, DOCX supported
Authentication: Email, SMS code, or KBA
Audit Trail: IP and timestamp records

Common Contract Dates and Deadlines to Track

Option agreements contain fixed dates and notice windows; tracking these prevents forfeiture and litigation over missed deadlines.

Effective Date:

Date when rights and obligations begin.

Option Expiration:

Final date to exercise the option.

Exercise Notice Deadline:

Date by which written notice must be received.

Payment Due Date:

Deadline to remit exercise consideration.

Recording Window:

Timeframe to record transfer instruments, if required.

Key Milestones from Agreement to Closing

Track a small set of milestones as numbered stages to keep parties aligned and to document performance milestones that trigger obligations.

01

Preparation

Drafting and internal approvals completed before signature.

02

Execution

All parties sign and date the agreement.

03

Option Monitoring

Optionor records receipt of consideration and monitors period expiration.

04

Exercise and Closing

Notice given, payment made, and transfer steps executed.

Critical Agreement Elements to Include

A robust option agreement is precise about scope, price, timing, and remedies. Include explicit clauses to reduce later disputes and define post-exercise steps.

Parties

Full legal names and capacities of optionor and optionee, plus signing authority and entity details to identify who may enforce or exercise the option.

Grant and Scope

Clear statement of what rights are granted, any limitations, permitted transfers, and whether the option is exclusive or non-exclusive.

Option Period

Precise start and end dates, and conditions for extension or early termination, including notice procedures.

Exercise Mechanics

How to give notice (form, address, delivery method), payment instructions, and any required documentation at exercise.

Consideration

Amount and treatment of option payment (non-refundable, credited to purchase price, or separate), and consequences of default.

Remedies & Dispute Resolution

Specify damages, specific performance, governing law, venue, and any arbitration or mediation requirements.

Security and Compliance Features to Verify

Encryption: TLS 1.2/1.3; AES-256

Audit Trail: IP, timestamp, action log

Certifications: SOC 2 Type II; ISO 27001

HIPAA Controls: BAA available

ESIGN/UETA: Legal framework coverage

Accessibility: WCAG 2.0 AA

Common Risks and Consequences of Poor Execution

Forfeiture: Loss of option rights

Monetary Damages: Compensatory award

Specific Performance: Court-ordered completion

Tax Exposure: Unintended taxable events

Invalid Signature: Enforceability challenge

Recording Errors: Title defects

eSignature Pricing Snapshot for Option Agreements

Compare common vendor starting prices and feature availability for handling a Legal Signed Option Agreement; signNow is listed first per vendor 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	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Available on tiers	Available on tiers	Available on tiers	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Enterprise options	Enterprise options	Varies	Varies

Frequently Asked Questions and Practical Answers

Answers to common questions about enforceability, e-signatures, notarization, revisions, and recordkeeping for option agreements.

Need help? Contact support

Are electronic signatures valid for these agreements?
Yes—electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are present.
When is notarization required?
Notarization is typically unnecessary for basic option contracts but may be required or recommended when the option affects real property rights or instruments to be recorded; check state deed rules and county recording requirements.
How should I document an exercise notice?
Follow the agreement’s specified method (e.g., certified mail, email with delivery receipt, or registered courier) and preserve proof of receipt and timestamp for dispute resolution and title purposes.
Can the agreement be amended electronically?
Yes—amendments are enforceable when signed with the same legal standard for electronic signatures; document the amendment date, parties, and integrate it into the original agreement record.
What if a party’s signature is challenged?
Maintain the audit trail (IP, timestamp, authentication method) and supporting evidence of authority; courts consider the totality of intent, attribution, and record integrity under ESIGN/UETA.
How long should I keep signed agreements?
Retain active agreements for their term plus several years; follow federal minima such as IRC §6501(a) for tax records and 45 CFR §164.530(j) for HIPAA-covered documents.

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