This office lease provision states that at the end of the fifth (5th) year of the lease, the tenant shall have an option to purchase the building in which the premises is located at fair market value.
A Washington Provision Setting Out a Purchase Option is a legal agreement that grants one party the exclusive right to buy a specific property within a defined timeframe, at a predetermined price. This provision is commonly utilized in real estate transactions, providing potential buyers with the flexibility to secure a property while still considering their purchasing decision. There are various types of Washington Provision Setting Out a Purchase Options, including: 1. Lease Option: This type of provision allows a tenant to lease a property with the option to purchase it at the end of the lease term. It provides the tenant with the opportunity to test out the property before committing to the purchase. 2. Option Agreement: This agreement typically sets out the terms and conditions for the purchase option, such as the option price, period of validity, and any specific conditions that must be met for the option to be exercised. 3. Right of First Refusal: In this provision, a potential buyer is given the first opportunity to purchase a property if the owner decides to sell it. The owner must present the offer to the holder of the right of first refusal before considering other offers. 4. Contract for Deed: Also known as a land contract or installment sale agreement, this provision allows the buyer to take possession of the property immediately while making installment payments to the seller over an agreed period of time. The buyer gains equitable title to the property, but the legal title remains with the seller until the purchase price is fully paid. 5. Put/Call Option: In this provision, the seller grants the buyer (call option) or the buyer grants the seller (put option) the right to buy/sell the property at a predetermined price within a specified timeframe. This option can be valuable for both parties as it allows them to hedge against uncertain market conditions. When drafting a Washington Provision Setting Out a Purchase Option, it is crucial to consider the specific details of the transaction, including the property's location, purchase price, option period, and any conditions or contingencies that need to be fulfilled for the option to be exercised. Overall, a Washington Provision Setting Out a Purchase Option provides a mechanism for potential buyers to secure a property, giving them time to further evaluate the suitability of the property before making a final purchase decision.
