How should I deliver the notice?

Deliver using the method specified in the lease (for example, certified mail, personal delivery, or email). If the lease prescribes a method, that method controls whether exercise is timely and effective.

Can the notice be electronically signed?

Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted. Ensure the platform captures an audit trail and follows the lease's service rules.

What if the lessor does not acknowledge receipt?

Retain proof of delivery (return receipt, courier tracking, email delivery report). If the lease requires acknowledgment, follow up in writing and consult counsel if the lessor refuses to cooperate.

Does the notice require notarization or witnesses?

Notarization is common for conveyance documents; the notice itself typically does not require notarization unless the lease states otherwise. Check the lease and state rules for deeds and related closing documents.

Can I revoke the notice after sending it?

Revocation depends on the lease terms. Many option clauses restrict unilateral revocation after notice. If you believe revocation is necessary, negotiate an amendment and document consent from the lessor.

What documentation helps avoid title issues?

Include the lease, option clause, exact legal description, evidence of paid rents or required repairs, and a statement confirming any conditions precedent were met to assist title clearance.

Electronic Signature
Templates
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Notice to Lessor of Lessee's Exercise of Option to Purchase

Notice to Lessor of Lessee's Exercise of Option to Purchase

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

NOTICE TO LESSOR OF LESSEE'S EXERCISE OF OPTION TO PURCHASE

TO:

NOTICE IS HEREBY GIVEN, pursuant to the provision of our Lease Agreement with

Option to Purchase, dated for the premises addressed:

that Lessee intends to, and hereby do exercise the option to purchase the premises. The

purchase price specified in the relevant clause/paragraph of said Lease Agreement and/or

the Option Agreement, of $ to be paid as follows:

If required by the Agreement, I am enclosing herewith $ as a down payment.

Signed, this the day of ,

Signed:

[Tenant/Lessee]

Print name:

What this Notice Is and when it applies

A Notice to Lessor of Lessee's Exercise of Option to Purchase is a written statement by a tenant (lessee) asserting the lessee's decision to exercise a pre-existing option to buy leased property under the lease terms. The notice identifies the lease, property, exercise date, and intended closing timetable and converts an option right into an enforceable step toward purchase when delivered according to the lease. Properly drafted notice clarifies price, deadlines, delivery method, and any conditions precedent so the lessor and third parties (title companies, lenders) can prepare for closing and recording.

Why a clear exercise notice matters

A precise, dated notice preserves the lessee's contract right, creates evidence of timely exercise, and starts the contractual closing timeline so both parties can meet obligations.

Who prepares and relies on this notice

Typical parties involved in preparing or receiving the notice.

Lessee (tenant) — the party exercising the purchase option, responsible for preparing and delivering the notice accurately.
Lessor (owner) — the recipient who must acknowledge or respond per lease deadlines and prepare conveyance documents.
Title company or lender — reviews notice for recording and closing requirements and starts title/financing steps.

Clear allocation of duties reduces disputes at closing and speeds title and financing tasks.

Primary signers and stakeholders

Lessee (Buyer)

A lessee exercising the option should be identified by the exact legal name used in the lease, specify the property, declare the option exercise date, and confirm readiness to close on stated terms to avoid ambiguity or a later challenge.

Lessor (Owner)

The lessor must confirm receipt, verify the lessee satisfied any conditions in the lease, and coordinate conveyance, title clearance, and any required signatures to preserve both parties' contract rights and avoid forfeiture.

Core elements every professional notice should include

A professionally prepared Notice to Lessor of Lessee's Exercise of Option to Purchase is succinct but complete; it names the parties, cites the lease and option clause, and sets clear deadlines and delivery instructions so there is no factual dispute about exercise.

Identifying Parties

Full legal names and mailing addresses for lessee and lessor, matching the lease, so identity and service addresses are unambiguous for receipt and record-keeping.

Lease Reference

Reference the lease date, recorded instrument (if any), and the specific option clause or paragraph to tie the notice to the exact contractual provision being exercised.

Property Description

A legal description or full street address consistent with title records to prevent confusion during title search and recording at closing.

Exercise Statement

A clear declaration that the lessee elects to exercise the purchase option, including the effective exercise date using MM/DD/YYYY format.

Price and Terms

State the agreed purchase price and any adjustments, deposit instructions, allocation of closing costs, and financing contingencies described in the lease or option addendum.

Closing and Delivery

Provide target closing date, closing agent or title company contact, delivery address for documents, and instructions about recording the deed or transfer.

Document and signature security notes

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256 encryption

eSignature law: ESIGN and UETA compliant

HIPAA support: BAA available

Audit trail: Timestamped event log

Access controls: Role-based authentication

Step-by-step: completing and delivering the notice

Follow these steps in order to create a defensible exercise notice and produce proof of delivery and receipt for the closing process.

01

Review Lease: Confirm option clause terms, deadlines, required delivery method, and any conditions precedent.
02

Draft Notice: State parties, lease reference, property description, exercise statement, price, and closing timetable.
03

Sign and Date: Sign as the lessee or authorized officer and date using MM/DD/YYYY to fix the exercise moment.
04

Deliver and Document: Send per lease instructions (certified mail, email with read receipt, or personal delivery) and retain proof of delivery.

Configuring an online workflow for the notice

Set up an e-sign and routing workflow so the notice is signed, routed to stakeholders, and stored with an audit trail for closing.

Field	Configuration
Signature Method	eSignature link \| email-based signer authentication
Authentication	Email plus optional SMS code or ID verification
Integrations	Title company, CRM, or cloud storage (Salesforce, NetSuite, Google Workspace)
File Format	PDF/A export for archival and recording

Technical considerations for digital completion

Choose an eSignature platform that meets legal, security, and integration needs for real estate notices.

File types: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Notarization: Remote or in-person options

Where to send or file the exercise notice

Delivery depends on the lease; prepare to send copies to the lessor, title company, and any listed agents, and retain proof of service.

Lessor Email: Send signed notice to the lessor's contractual service email and request acknowledgment.
Property Manager: Provide a copy to any property manager listed in the lease for operational steps.
Title Company: Forward the notice so title can begin clearance and prepare closing documents.
County Recorder: Record the deed post-closing if recording is required to transfer title officially.

Typical deadlines and timing expectations

Key dates flow from the lease option clause; missing a deadline commonly forfeits the option so track each milestone carefully.

Exercise Deadline:

Date by which the lessee must deliver notice per the lease.

Lessor Response Deadline:

Timeframe for lessor to acknowledge or cure conditions, if specified.

Closing Target Date:

Date by which parties expect to close following exercise.

Recording Deadline:

Time to record deed after closing, where applicable.

Funding and Title:

Allow time for title clearance and lender funding before closing date.

Key milestones from exercise to closing

A typical milestone sequence begins with exercise and ends with recording; each stage creates actionable tasks and deadlines for parties and third parties.

01

Exercise Notice Sent

Lessee delivers written notice and sets the exercise date.

02

Acknowledgment by Lessor

Lessor confirms receipt and prepares seller documents.

03

Purchase Contract Execution

Parties sign purchase documents and deposit funds as required.

04

Closing and Recording

Title company closes transaction and records the deed.

Common mistakes to avoid when preparing the notice

Failing to follow the lease's required delivery method (for example, sending email when certified mail is required) can render an exercise untimely and void the option.
Using an imprecise property description or mismatched party names delays title work and can introduce exceptions during the title search.
Neglecting to confirm and satisfy any lease conditions precedent (repairs, escrowed payments) before sending notice may allow the lessor to lawfully reject exercise.
Omitting signature authority details when an entity signs (no corporate resolution or officer title) can lead third parties to refuse to close.

Consequences of an incorrect or late notice

Forfeited Option: Loss of purchase right

Title Delays: Extended closing timeline

Contract Dispute: Litigation or arbitration risk

Financial Loss: Lost deposit or market shifts

Recording Errors: Clouded title risk

Financing Denial: Lender may refuse funding

How to update, amend, or revoke an exercise notice

If a change is necessary, follow formal amendment steps and document delivery and acceptance; leases often limit unilateral revocation or amendment.

01

Review Amendment Rights:

Check lease for permitted changes and any required consent.

02

Draft Amendment:

State changes, effective date, and reason clearly.

03

Obtain Signatures:

Have all required parties sign and date the amendment.

04

Deliver Per Lease:

Serve the amendment using the lease's specified method.

05

Notarize if Needed:

Notarize or witness the amendment if the lease requires it.

06

Retain Copies:

Keep executed amendment with original notice and lease.

eSignature pricing and feature snapshot for notice workflows

Compare typical starting prices and core capabilities across vendors to choose a platform that meets security, HIPAA, and volume needs for real estate notices.

	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 trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/yr	Varies	Varies	Varies

Supporting documents and export options to include

Attach supporting documents that commonly accompany an exercise notice and choose archival formats accepted by title and recording offices.

Supporting Attachments

Attach the lease, option addendum, proof of condition satisfaction, and any escrow instructions to provide context and evidence for title work.

Proof of Delivery

Retain certified mail return receipts, email read receipts, or courier tracking showing when and how the lessor received the notice.

Export Formats

Save final signed packages as PDF/A for long-term archival and as standard PDF for sharing with title companies and lenders.

Closing Package

Include executed notice, purchase contract, evidence of funds, and title commitments so the closing agent can process recording efficiently.

Frequently asked questions about exercising the purchase option

Answers to common questions help avoid procedural errors and clarify the legal effect of the notice, signature, and delivery methods.

Need help? Contact support

How should I deliver the notice?
Deliver using the method specified in the lease (for example, certified mail, personal delivery, or email). If the lease prescribes a method, that method controls whether exercise is timely and effective.
Can the notice be electronically signed?
Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted. Ensure the platform captures an audit trail and follows the lease's service rules.
What if the lessor does not acknowledge receipt?
Retain proof of delivery (return receipt, courier tracking, email delivery report). If the lease requires acknowledgment, follow up in writing and consult counsel if the lessor refuses to cooperate.
Does the notice require notarization or witnesses?
Notarization is common for conveyance documents; the notice itself typically does not require notarization unless the lease states otherwise. Check the lease and state rules for deeds and related closing documents.
Can I revoke the notice after sending it?
Revocation depends on the lease terms. Many option clauses restrict unilateral revocation after notice. If you believe revocation is necessary, negotiate an amendment and document consent from the lessor.
What documentation helps avoid title issues?
Include the lease, option clause, exact legal description, evidence of paid rents or required repairs, and a statement confirming any conditions precedent were met to assist title clearance.

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