Real Estate OTP Land Agreement

REAL ESTATE OPTION TO PURCHASE (OTP) — LAND AGREEMENT

This Option to Purchase Agreement (the "Agreement") is made effective as of by and between Owner/Optionor: and Prospective Purchaser/Optionee: .

Parties and Contact Information

Property Identification

Grant of Option; Option Fee; Term

For good and valuable consideration, Owner grants to Purchaser the exclusive option to purchase the Property upon the terms set forth in this Agreement. Purchaser shall pay an option fee in the amount of which shall be against the Purchase Price if the Option is timely exercised. The Option Commences on and expires at 5:00 p.m. local time on (the "Option Period").

Purchase Price; Exercise; Closing

The agreed Purchase Price for the Property, if the Option is exercised, shall be payable in lawful funds at Closing. Purchaser shall deliver written notice of exercise to Owner no later than the Option Expiry Date. Upon exercise, Purchaser shall deposit earnest money in the amount of within days of exercise. Closing shall occur on or before or within days after exercise, whichever occurs first.

At Closing, the option fee and earnest money shall be applied to the Purchase Price. Closing costs, transfer taxes, and escrow fees shall be allocated as follows:

Contingencies; Inspections; Access

Purchaser shall have a period of days from the date of exercise to complete inspections and investigations of the Property ("Inspection Period"). Purchaser shall provide Owner reasonable notice prior to entry. Owner shall not unreasonably withhold consent to inspections. Any defects uncovered during inspections shall be addressed as follows:

Financing is . If financing contingency applies, Purchaser shall have days after exercise to obtain written loan commitment.

Title; Survey; Prorations

Owner shall deliver marketable title at Closing by general warranty deed (or other conveyance as agreed). Purchaser may, at Purchaser's expense, obtain a survey prior to Closing. Taxes, assessments, rents and other items shall be prorated as of the Closing Date, unless otherwise agreed in writing.

Disclosures

Owner represents and discloses the following to the best of Owner's actual knowledge (check applicable):

Lead-based paint disclosure applicable: Yes No

Known mold or water intrusion: Yes No

Prior substantial damage or repairs (structural, drainage, environmental): Yes No

Default, Remedies and Specific Performance

If Purchaser fails to timely exercise the Option, the Option shall terminate and Owner may retain the option fee as liquidated damages and not a penalty, in full satisfaction of Owner's damages, unless Owner elects otherwise in writing. If Purchaser timely exercises and thereafter wrongfully fails to close, Owner may pursue specific performance or damages. If Owner fails to perform at Closing due to breach, Purchaser may pursue specific performance, damages, or rescission. The prevailing party in any action to enforce this Agreement shall be entitled to recover reasonable attorneys' fees and costs.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses below by hand, nationally recognized overnight courier, or certified mail (return receipt requested), or other method agreed in writing.

Representations; As-Is Condition; Environmental

Owner represents that Owner has authority to grant this Option and transfer the Property at Closing, subject to disclosures herein. Except as expressly stated in this Agreement or in written disclosures delivered to Purchaser, the Property is conveyed in its present condition and Owner makes no express or implied warranties regarding fitness for a particular purpose. Purchaser acknowledges that Purchaser has the opportunity to complete environmental assessments and further investigation during the Inspection Period. Owner shall not knowingly introduce hazardous materials to the Property between the Effective Date and Closing.

Recording; Assignment; Taxes

This Agreement shall not be recorded except as may be required by law. Purchaser may not assign the Option without Owner's prior written consent, which shall not be unreasonably withheld. Real property taxes and assessments shall be prorated as of Closing. Any transfer or recording required to vest title shall be borne by the parties as set forth in this Agreement.

Governing Law; Entire Agreement; Amendment

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located. This Agreement contains the entire understanding between the parties with respect to the Option and supersedes all prior negotiations and agreements. Any amendment must be in writing and signed by both parties to be effective.

Acknowledgment and Execution

Each party acknowledges receipt of a copy of this Agreement, represents that the person signing on its behalf is authorized to bind the party, and that the party has had the opportunity to seek independent legal counsel prior to execution.

Sign Now