Property Purchase OTP

PROPERTY PURCHASE OPTION TO PURCHASE

Parties and Property

Optionor (Seller) Name:

Optionee (Buyer) Name:

Grant of Option; Consideration

For good and valuable consideration, Optionor hereby grants to Optionee the exclusive, irrevocable option to purchase the Property on the terms and conditions set forth in this Option to Purchase (the Option). Optionee's payment of the Option fee shall be non-refundable except as expressly provided herein.

Option Term and Exercise

Option Commencement Date:    Option Expiration Date (Time of Day local):

To exercise the Option, Optionee must deliver to Optionor written notice of exercise (the Exercise Notice) prior to the Option Expiration Date and pay any required deposit as described below. Exercise is effective upon Optionor's receipt of the Exercise Notice and funds in good funds.

Closing; Possession; Prorations

Closing shall occur on or before unless the parties mutually agree in writing to an extension. Time is of the essence for the Closing Date.

Possession shall be delivered to Buyer at Closing with the Property broom-swept and free of personal property except as expressly set forth in writing. Possession shall be:

Real estate taxes, assessments, rents, and utilities shall be prorated as of the Closing Date on a per diem basis, subject to adjustments for payments made prior to Closing.

Inspections, Contingencies, and Title

Inspection Period (number of calendar days from Effective Exercise):

Optionee may conduct inspections and tests at Optionee's expense. If material defects are discovered, Optionee may (i) waive the defect and proceed to Closing; (ii) deliver written notice requesting correction; or (iii) cancel the purchase if the defect materially affects value or habitability, provided Optionee delivers cancellation notice within the Inspection Period.

Financing; Earnest Money

The obligations of Optionee under this Option are not conditioned upon Optionee obtaining financing unless Optionee checks the financing contingency box below and completes the financing deadline fields.

Financing contingency selected

If selected: Loan Amount Requested:    Financing Approval Deadline:

Disclosures and Representations

Optionor represents and warrants that, to Optionor's knowledge, the following statements are true as of the Effective Date. Optionor shall supplement any material changes prior to Closing.

Lead-Based Paint (if Property was built before 1978): Yes No

Known Mold or Water Intrusion: Yes No

Material Structural Damage or Prior Major Repair Work: Yes No

Default; Remedies

If Optionee properly exercises the Option and fails to close without a valid contractual excuse, Optionor may retain the Option Fee and any deposits as liquidated damages or pursue specific performance or other remedies at law or equity. If Optionor fails to perform at Closing, Optionee may seek specific performance, terminate this Option and receive return of deposits, or pursue other remedies permitted by law. The parties acknowledge that actual damages are difficult to ascertain and that remedies stated herein are reasonable.

Assignment; Recording; Costs

Optionee may assign the Option only with Optionor's prior written consent, which shall not be unreasonably withheld. This Option shall not be recorded without the prior written consent of both parties; if recorded in breach, the recording party shall defend and indemnify the non-recording party from all claims.

Closing costs, including documentary transfer taxes, title insurance premium, escrow or closing fees, and recording fees, shall be allocated as agreed by the parties and set forth in the purchase documents. If not specified, customary local practice shall govern allocation.

Notices

All notices must be in writing and delivered by personal delivery, nationally recognized overnight courier, or registered mail, return receipt requested, to the addresses set forth below or to such other address as a party designates in writing.

Miscellaneous Provisions

Governing Law: This Option shall be governed by and construed in accordance with the laws of the state where the Property is located. Venue for any dispute shall be in the appropriate state or federal courts of that state.

Entire Agreement: This Option, together with any exhibits and the Exercise Notice when executed, constitutes the entire agreement between the parties concerning the Option and supersedes all prior agreements and understandings, oral or written.

Acknowledgment and Certification

Each party certifies that the person signing this Option on its behalf is duly authorized to do so, that the party has read and understands the terms of this Option, and that the execution of this Option is a binding obligation upon the party.

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