What makes a notice effective?

An effective notice meets the lease’s content and delivery requirements, is signed by an authorized party, and is received by the lessor within any contractual deadline.

Can I eSign the notice?

Yes if the lease and applicable state law permit electronic signatures; ESIGN (15 U.S.C. ch. 96) and UETA apply in most states, though check for any contract-specific or state exceptions.

Is notarization required?

The notice itself often does not require notarization, but related documents (deed) typically do; follow lease terms and state recording requirements to confirm.

What if the lessor disputes the notice?

Retain proof of delivery and consult counsel; timely filed notices and attached lease citations strengthen the optionee’s position and often prompt escrow resolution.

How should I deliver the notice?

Use the method specified in the lease (certified mail, personal delivery, or permitted electronic delivery) and keep documented proof of the transmission and receipt.

Can I revoke the notice?

Revocation depends on the lease terms and timing; if a revocation is allowed, provide written notice to the lessor and follow any contractual procedures.

Electronic Signature
Templates
Other
Notice to Lessor Exercise of Option to Purchase

Notice to Lessor 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!

What the Notice to Lessor Exercise of Option to Purchase Is

A Notice to Lessor Exercise of Option to Purchase is a written declaration by a tenant or optionee notifying the lessor (owner) that the tenant intends to exercise a previously granted option to purchase the leased property. The notice typically identifies the lease, cites the option clause, states the exercise date, and confirms readiness to close under the option terms. It preserves contractual rights, triggers any seller obligations, and starts timing for performance, inspection periods, closing, and recording as set out in the lease or option agreement.

Why a Clear Exercise Notice Matters

A precise written notice protects the optionee’s rights, creates an evidentiary record, and triggers contractual deadlines while aligning with electronic signature laws such as the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states.

Who Typically Prepares and Receives This Notice

The notice is commonly prepared by tenants, purchasers under lease-option agreements, or their counsel and delivered to the lessor or lessor’s agent.

Tenants and Optionees — Individuals or entities exercising a contractual purchase option, who must follow lease timing and form requirements.
Lessees’ Counsel and Title Agents — Draft or review the notice to ensure it satisfies contract terms and preserves recording priority.
Property Owners and Lessors — Receive formal notice; must respond, coordinate closing, and prepare deed and title documents.

Key Elements to Include in the Exercise Notice

A professional notice contains standardized elements so both parties and downstream title/escrow providers can act quickly and accurately.

Identification

Lease and option reference, property address, and parties named exactly as in the lease.

Statement of Exercise

Clear declaration the option is being exercised and citation of the option clause.

Exercise Date

Date the option is exercised; determines timing for subsequent obligations.

Closing Window

Proposed closing date range or deadline per the option terms.

Deposit / Consideration

Amount and instructions for earnest money or payments required by the option.

Delivery Method

How notice is delivered (certified mail, personal delivery, email if allowed) and proof of delivery.

Step-by-Step: How to Complete and Serve the Notice

Follow an ordered process to ensure the notice is valid, delivered, and triggers the contractual timetable correctly.

01

Confirm Option Terms: Review the lease option clause, deadlines, and any conditions precedent before preparing notice.
02

Prepare Written Notice: Draft the notice using exact lease references and required fields; attach relevant exhibits if required.
03

Sign and Date: Have the authorized signatory sign and date the notice; follow any witness or notarization clause if present.
04

Deliver and Document: Send by the contractually required method and retain proof of delivery for the closing process.

Setting Up a Digital Workflow for this Notice

When using an eSignature platform, configure authentication, required fields, and storage to mirror contractual and legal needs.

Field	Configuration
Authentication	Email link or SMS code; stronger KBA if required for high-assurance identity.
Signature Type	Click-to-sign or drawn signature; use digital signature only if cryptographic assurance required.
Attachments	Attach lease excerpt and option clause as PDF exhibits for clarity.
Retention	Save signed PDF/A with audit trail and certificate of completion.

Where to Send the Notice and What Happens Next

Delivery method and recipient determine when obligations begin; the notice also informs title/escrow coordination.

Deliver to Lessor: Send to lessor or designated agent per lease instructions; include proof of delivery.
Notify Title/Escrow: Provide executed notice and exhibits to the title company to begin closing preparations.
Seller Response: Lessor confirms acceptance or indicates any cure required before closing.
Schedule Closing: Coordinate dates, funds, and deed preparation consistent with the option and local recording rules.

Digital Signing and Platform Considerations

Choose a platform that preserves an unalterable audit trail, supports required authentication, and stores signed records securely.

Integrations: Connect to title, escrow, or CRM systems like Salesforce or NetSuite for workflow continuity.
Security: Use TLS/AES encryption and platforms that support audit trails and retention controls.
Authentication: Enable email, SMS, or stronger ID verification depending on lease requirements.

Common Timing Elements to Note in the Lease and Notice

Timelines are contract-driven; confirm each deadline in the lease to avoid waiver or forfeiture of the option right.

Exercise Deadline:

Date by which written notice must be received to validly exercise the option.

Inspection Period:

Window for property inspection or due diligence after notice delivery.

Closing Date:

Date the parties must close and transfer title under the option terms.

Recording Deadline:

Timeframe for recording the deed if the option closes; depends on local practice.

Deposit Deadline:

When earnest money must be delivered to escrow or title.

Key Milestones from Notice to Recorded Deed

A typical milestone sequence begins with notice and culminates in closing and recording; each stage has distinct tasks and timing.

01

Notice Served

Tenant delivers the written exercise notice to lessor by the contractual method.

02

Lessor Acknowledgement

Lessor confirms receipt and any prerequisites or acceptance conditions.

03

Contract and Escrow

Parties execute purchase documents, deposit funds, and open escrow or title file.

04

Closing and Recording

Funds conveyed, deed signed, and deed recorded with county recorder.

Common Mistakes to Avoid When Preparing the Notice

Using informal or ambiguous descriptions of the property instead of the exact lease reference and street address can lead to disputes about which option is invoked.
Failing to follow the lease‑specified delivery method (for example, sending email when certified mail is required) can forfeit or delay the exercise.
Omitting signing authority or failing to include the signatory’s title when an entity signs can result in challenges to enforceability.
Neglecting to copy title, escrow, or lender contacts delays closing and may create priority or funding complications.

Consequences of an Incorrect or Untimely Notice

Forfeited Option: Loss of purchase right.

Breach Liability: Damages for violating lease terms.

Recording Priority: Delayed recording may affect title status.

Closing Delay: Additional costs and scheduling impacts.

Administrative Costs: Extra fees for corrections and attorney review.

Escrow Disputes: Potential hold or litigation over deposits.

Document and Platform Security Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.

Audit Trail: Timestamps, IP, and action logs document signing events.

Access Controls: Role-based permissions and SSO reduce unauthorized edits.

HIPAA BAA: BAA required for health-related tenant data.

ESIGN / UETA: Platform should support ESIGN and UETA compliance.

Certifications: SOC 2 Type II and ISO 27001 demonstrate controls.

Practical Tips for Accurate and Efficient Completion

Adopt consistent document controls and verification steps to reduce errors and preserve enforceability.

Use Exact Contract Language

Copy lease and option clause identifiers verbatim into the notice and attach the relevant lease excerpt to avoid ambiguity and streamline title review.

Confirm Signatory Authority

Verify the signer's authority for entities and include corporate titles or resolutions when required to prevent post-signing challenges.

Document Delivery Proof

Use certified mail, courier receipts, or eSignature audit trails to document delivery and receipt dates for dispute resolution.

Coordinate with Title

Notify title and escrow early, providing all exhibits and contact information to accelerate closing and reduce rework.

Select eSignature Provider Pricing and Feature Comparison

A concise comparison of starting prices and key capabilities for common eSignature vendors; signNow appears first for reference.

	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	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	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/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Exercising an Option to Purchase

Answers to common questions about validity, delivery, signatures, and next steps when exercising an option to purchase leased property.

Need help? Contact support

What makes a notice effective?
An effective notice meets the lease’s content and delivery requirements, is signed by an authorized party, and is received by the lessor within any contractual deadline.
Can I eSign the notice?
Yes if the lease and applicable state law permit electronic signatures; ESIGN (15 U.S.C. ch. 96) and UETA apply in most states, though check for any contract-specific or state exceptions.
Is notarization required?
The notice itself often does not require notarization, but related documents (deed) typically do; follow lease terms and state recording requirements to confirm.
What if the lessor disputes the notice?
Retain proof of delivery and consult counsel; timely filed notices and attached lease citations strengthen the optionee’s position and often prompt escrow resolution.
How should I deliver the notice?
Use the method specified in the lease (certified mail, personal delivery, or permitted electronic delivery) and keep documented proof of the transmission and receipt.
Can I revoke the notice?
Revocation depends on the lease terms and timing; if a revocation is allowed, provide written notice to the lessor and follow any contractual procedures.

Explore Templates

Request for Copy of Tax Form Irrevocable Assignment Form Letter Requesting Medical Report for Personal Injury Claim Settlement Statement and Receipt Order Granting Leave to Withdraw Complaint Auto Accident

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now