Are electronic signatures legally valid on this addendum?

Yes. The ESIGN Act (15 U.S.C. ch. 96) and UETA permit electronic signatures when intent, consent, attribution, and retention requirements are satisfied. Universal exceptions (wills, certain court filings, etc.) may still require wet signatures per state law.

Is notarization or witness required for enforceability?

Notarization requirements vary by state and by document type. Deed acknowledgements are required for recording; some states require witnesses for deeds or POAs. Remote online notarization (RON) may be permitted where state law allows; verify with the state notary commission.

Can remote online notarization apply to options addenda?

Possibly. Many states now authorize RON but procedures vary: identity proofing, audio‑video recording, and record retention are commonly required. Confirm the state's RON statute and recorder acceptance before relying on RON for recording or as a substitute for in-person notarization.

What is the revocation process for an option?

Revocation depends on the contract language: options can be terminated per their terms, by mutual written agreement, or through breach. For unilateral revocation, follow notice provisions in the addendum. Keep records of notice delivery and consult counsel for contested revocations.

How are disputes handled if parties disagree at closing?

Include dispute resolution and remedies in the addendum—choice of law, venue, and whether arbitration applies. If disagreement arises, preserve all communications, follow cure periods, and consult counsel promptly to pursue injunctive relief or specific performance where appropriate.

Where should executed addenda be stored and for how long?

Store signed PDFs and audit trails in encrypted cloud storage with AES‑256 and retain per applicable retention rules—minimum three years for tax records (IRC §6501(a)) and six years for HIPAA‑covered records (45 CFR §164.530(j)). Maintain accessible backups for audits.

Electronic Signature
Templates
Real estate
Real Estate Options Addendum

Real Estate Options Addendum

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

REAL ESTATE OPTIONS ADDENDUM

Parties and Transaction

Optionor (Property Owner):

Optionor Contact Information

Optionee (Prospective Buyer):

Optionee Contact Information

Property Identification

Street Address Parcel / APN Legal Description

Option Grant and Consideration

Optionor hereby grants to Optionee an exclusive option to purchase the Property on the terms and conditions set forth herein (the "Option"). Option consideration paid by Optionee to Optionor: $.

Option Term Commences on: and Expires on: (the "Option Period").

Duration / Automatic Extension

Exercise of Option; Purchase Terms

To exercise the Option, Optionee must deliver written Notice of Exercise to Optionor at the address set forth below within the Option Period. Notice of Exercise shall be effective upon .

Purchase Price upon exercise: $. Earnest money to be delivered upon exercise: $. Option consideration shall be .

Closing shall occur on or before or within days after delivery of Notice of Exercise, unless otherwise agreed in writing.

Contingencies; Inspections; Title

Financing Contingency: Yes No

If financing contingency applies, describe terms and deadlines

Inspection Period: Optionee shall have days following delivery of Notice of Exercise to conduct inspections and investigations. Optionee shall provide written notice of defects to Optionor within that period to preserve remedies.

Title and Survey: At Closing, Optionor shall deliver marketable and insurable title by , subject only to permitted exceptions to be agreed in writing.

Condition, Possession, and Assignment

Condition at Closing: The Property shall be conveyed in substantially the same condition as of the Effective Date, reasonable wear and use excepted. Optionee accepts responsibility to verify condition during inspection period.

Possession to be delivered to Optionee: .

Assignment of Option: Assignment Allowed Assignment Not Allowed

Default; Remedies

If Optionee fails to timely exercise the Option or otherwise defaults, Optionor's sole remedies shall be retention of option consideration and any other remedies at law or equity. If Optionor breaches this Addendum, Optionee's remedies include specific performance and damages, subject to applicable law.

Disclosures

Lead-Based Paint (where applicable): Yes No

Material Defects Known to Optionor:

Notices

All notices under this Addendum shall be in writing and delivered to the parties at the addresses below by certified mail, personal delivery, or nationally recognized overnight carrier, and shall be effective upon receipt.

Optionor Notice Address Optionee Notice Address

Miscellaneous Provisions

Governing Law: This Addendum shall be governed by and construed in accordance with the laws of the state in which the Property is located.

Entire Agreement: This Addendum, together with any referenced purchase agreement and related exhibits, constitutes the entire agreement between the parties with respect to the Option and supersedes all prior agreements and understandings, whether written or oral.

Modification: No amendment or modification of this Addendum shall be effective unless in writing and signed by both parties.

Severability: If any provision of this Addendum is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Acknowledgment and Certification

Each signatory represents and warrants that they have full authority to enter into this Addendum, that they have read and understand its terms, and that the statements herein are true, complete, and accurate.

Optionor Printed Name:

By:

Date:

Optionee Printed Name:

By:

Date:

What the Real Estate Options Addendum Is

The Real Estate Options Addendum is a supplemental agreement attached to a purchase or lease contract that records option terms between buyer or tenant and seller or landlord. It sets the option period, price or formula, exercise requirements, consideration paid for the option, and any conditions or contingencies. The addendum clarifies deadlines, inspection rights, assignment rules, and how the option affects closing mechanics. When completed accurately it creates an enforceable optional right governed by the contract and the governing state's real property law.

Why a Clear Options Addendum Matters

The addendum provides clear, written terms for option length, exercise procedures, and consideration, reducing ambiguity and litigation risk. It helps parties document time‑sensitive obligations, preserves option-related deposits, and supports enforceability under ESIGN/UETA when signed electronically.

Who Typically Uses This Addendum

Brokers, buyers, investors, landlords, and attorneys commonly use the Real Estate Options Addendum to document option rights and deadlines.

Buyer or optionee — secures the right to purchase or lease under specified terms during the option period.
Seller or optionor — records consideration, exercise conditions, and consequences of failure to exercise.
Broker/Attorney — drafts, reviews, and ensures compliance with state real property rules and deadlines.

Use the addendum to reduce ambiguity, support enforceability, and provide a clear exercise roadmap for all parties.

Core Elements to Include in a Professional Addendum

Essential components of a professional Real Estate Options Addendum help ensure clarity, enforceability, and predictable closing behavior when an option is exercised.

Option Terms

Clear definition of the option period, exercise price or formula, and any adjustments. Include benchmarks for price changes and whether taxes or assessments affect the exercise amount.

Consideration

Specify the cash or other consideration paid for the option, state whether it is refundable, and describe crediting or forfeiture provisions on closing or expiration.

Exercise Mechanics

Detail the notice procedure, acceptable delivery methods, recipient information, required content of exercise notice, and proof-of-delivery standards to avoid timing disputes. Include sample notice language to reduce ambiguity in enforcement.

Assignment

State whether option rights are assignable, require consent for assignment, and describe conditions that trigger permitted transfers or anti-assignment clauses. Provide examples of acceptable transferees.

Contingencies

List inspection, financing, title, or governmental approvals that can invalidate or extend the option; define cure periods and notice obligations for failures and specify remedies.

Governing Law

Specify the state law that governs interpretation and enforcement, and identify venue for disputes to reduce uncertainty in cross‑jurisdictional matters, including arbitration options if applicable.

Step-by-Step Completion and Execution

Follow these sequential steps to complete and execute a Real Estate Options Addendum accurately online or in person.

01

Prepare: Gather contract references, legal names, and consideration details before drafting.
02

Define Terms: Specify option period, price formula, exercise notice, and any contingencies.
03

Review: Have counsel or broker confirm compliance with state real property rules.
04

Sign: Obtain signatures, dates, and consider notarization or RON where appropriate.

Typical Electronic Execution Workflow

Typical electronic execution workflow for the addendum involves placement of fields, signer routing, authentication, and final delivery of executed copies.

Upload: Add the executed base contract and attach the options addendum.
Place Fields: Insert signature, date, and option-specific fields.
Assign Signers: Provide emails and set signing order or roles.
Complete: Signers authenticate, sign, and receive final PDFs plus audit trail.

Suggested Digital Workflow Settings

Set up a digital workflow to place fields, assign signers, and enforce signing order for the addendum.

Field	Configuration
Signer Order	Sequential \| Require optionor then optionee signature
Authentication	Email + SMS \| Use two-factor for added assurance
Conditional Fields	Yes \| Reveal exercise fields after deposit posted
Expiration Handling	Auto-expire \| Trigger notifications on final exercise date

Platform Requirements for eExecution

Digital execution requires a platform that supports fillable PDFs, signer authentication, and tamper-evident audit trails.

Formats: PDF and Word DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS, or KBA options

Required Information and Fields at a Glance

Parties: Full legal names of optionor and optionee

Property: Street address, parcel ID, and legal description

Option Period: Start and end dates in MM/DD/YYYY

Exercise Price: Fixed amount or formula description

Consideration: Amount paid and treatment on closing

Notarization: Notary or RON if required by state

Penalties and Common Legal Risks

Missed Deadline: Option lapses; loss of deposit

Ambiguous Terms: Triggers disputes and litigation risk

Incorrect Names: Voidable title or TIN mismatches

Improper Notice: Exercise may be invalidated

No Consideration: Unenforceable without stated payment

Notary Noncompliance: State challenges to recordability

Common Preparation Mistakes to Avoid

Using vague timing language, such as 'within a reasonable time', that creates disputes over whether exercise notices were timely and may lead to litigation.
Failing to specify delivery methods or recipient addresses for exercise notices, causing contested delivery dates and uncertainty about when the option period ends.
Omitting treatment of option consideration—whether refundable, credited at closing, or forfeited—can cause disputes at closing and affect buyer financing.
Not addressing assignment rights lets third parties claim options or transfer obligations unexpectedly, complicating title searches and closing procedures.

Key Dates and Deadlines to Track

Key dates and deadlines govern option validity, exercise procedures, and closing coordination; track them precisely to avoid forfeiture or litigation.

Option Effective Date:

Date option begins; affects all countdowns

Exercise Deadline:

Final day to provide valid exercise notice

Deposit Due Date:

When consideration or option fee must be paid

Inspection Period End:

Cutoff for property inspections and cure requests

Closing Target Date:

Projected closing date once option is validly exercised

Frequently Asked Questions and Practical Answers

Answers to common questions about executing, notarizing, and enforcing a Real Estate Options Addendum, including e-signature and RON considerations.

Need help? Contact support

Are electronic signatures legally valid on this addendum?
Yes. The ESIGN Act (15 U.S.C. ch. 96) and UETA permit electronic signatures when intent, consent, attribution, and retention requirements are satisfied. Universal exceptions (wills, certain court filings, etc.) may still require wet signatures per state law.
Is notarization or witness required for enforceability?
Notarization requirements vary by state and by document type. Deed acknowledgements are required for recording; some states require witnesses for deeds or POAs. Remote online notarization (RON) may be permitted where state law allows; verify with the state notary commission.
Can remote online notarization apply to options addenda?
Possibly. Many states now authorize RON but procedures vary: identity proofing, audio‑video recording, and record retention are commonly required. Confirm the state's RON statute and recorder acceptance before relying on RON for recording or as a substitute for in-person notarization.
What is the revocation process for an option?
Revocation depends on the contract language: options can be terminated per their terms, by mutual written agreement, or through breach. For unilateral revocation, follow notice provisions in the addendum. Keep records of notice delivery and consult counsel for contested revocations.
How are disputes handled if parties disagree at closing?
Include dispute resolution and remedies in the addendum—choice of law, venue, and whether arbitration applies. If disagreement arises, preserve all communications, follow cure periods, and consult counsel promptly to pursue injunctive relief or specific performance where appropriate.
Where should executed addenda be stored and for how long?
Store signed PDFs and audit trails in encrypted cloud storage with AES‑256 and retain per applicable retention rules—minimum three years for tax records (IRC §6501(a)) and six years for HIPAA‑covered records (45 CFR §164.530(j)). Maintain accessible backups for audits.

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