Compress Legal Maryland Option To Purchase Forms For Free

This is a long form of agreement where an owner grants to another party the option (or unilateral right) to purchase the owner's real property on the terms set out in the agreement. This Standard Document is for real property located in Ontario but may be adapted for use in other jurisdictions.

An option agreement is where a prospective buyer enters into an agreement with a landowner for the right to buy their land/property, often paying the landowner a sum of money as an option fee. The prospective buyer then has the option (within a period defined within the agreement) to buy the land/property.

The difference between a lease option and a lease purchase agreement is that the lease option only obligates the seller to sell. A lease purchase agreement commits both parties to the sale barring breach of contract or the buyer's inability to secure a mortgage.

The crucial distinction therefore between a conditional contract and an option agreement is that under an option agreement the buyer/developer retains absolute discretion as to whether to buy the property.

XYZ stock is currently trading at $50 per share. You believe that the price of XYZ stock will rise to $60 per share in the next month. You decide to buy a call option on XYZ stock with a strike price of $55 and an expiration date of one month from today. The cost of the option contract is $100.

An option to purchase agreement gives a home buyer the exclusive right to purchase a property within a specified time period and for a fixed or sometimes variable price. This, in turn, prevents sellers from providing other parties with offers or selling to them within this time period.