Option agreements give prospective purchasers the right to purchase a property at a pre-determined price. This option to purchase will be subject to the terms set out within the agreement and have a specified time scale. At Josiah Hincks, our option agreement solicitors have experience in preparing and negotiating option agreements that are the most suitable for you and your business.
Option agreements are often used in situations where you want to buy or sell a property conditional upon the happening of a certain event meaning that the purchase cannot happen immediately. Option agreements can tie down the buyer and the seller of the property to the deal set out within the agreement.
Things to consider
When drafting an option agreement, there are a few important things to consider, these are:
- The period that the option shall last for. Legally, an option can be granted for a maximum of 21 years, if it is longer than this the agreement becomes unenforceable.
- The price of the option itself. The opportunity to buy a property using an option is often acquired at a cost. This is usually a non-refundable sum of money.
- Whether the option to purchase can be transferred or sold to a third party.
There are also things to consider including within the agreement if the option is exercised:
- How the option can be exercised. Options are usually exercised by notifying the party granting the option in writing.
- The price of the property if the option is exercised.
- Time to complete the sale after the option is exercised.
Josiah Hincks are solicitors in Leicestershire. Contact us now for expert advice on all property issues.
Testimonials
Don't just take our word for it...
Here's what some of our recent clients had to say about us and our team.
"Absolutely first class service from Jessica Jones who handled my sale as an executor of the deceased's property. Response times and clarity were excellent and the proactive communication made the entire process flow very smoothly."
James
"Fantastic service, will definitely use again."
Teresa
"Sue was outstanding, very quick responses and explained everything, nothing was ever too much trouble!"
Charlene
We'll call you
Request a callback
Simply leave a few details with us and we will call you back.