Generate a comprehensive option to purchase agreement for real estate transactions. Grant the exclusive right to buy property at a fixed price within a defined period, with customizable option fee, due diligence, closing terms, and extension provisions.
I built this option to purchase agreement generator to help real estate investors, developers, and property buyers secure the right to purchase property without the immediate obligation to close. An option to purchase agreement is a powerful tool in real estate transactions that allows the grantee to lock in a purchase price while conducting due diligence, securing financing, or waiting for market conditions to improve, all while the grantor receives compensation through the option fee for keeping the property off the market.
This generator produces a comprehensive agreement that covers all essential terms: the grant of option with specific consideration, option fee treatment and creditability, exercise procedures and notice requirements, purchase price and adjustments, due diligence and inspection rights, title and survey requirements, closing procedures and timelines, representations and warranties from both parties, assignment provisions, default remedies, and optional extension and right of first refusal clauses.
Every field updates the live preview instantly so you can see exactly how your agreement will look before downloading. The generator includes conditional sections for extension provisions and right of first refusal that appear only when enabled, keeping the document focused on your specific transaction needs. Whether you are an investor securing a development opportunity, a buyer locking in a price during a financing period, or a tenant negotiating a purchase option in a lease, this tool generates a professional document ready for execution.
Key features include: dynamic section numbering that adjusts as you enable or disable optional provisions, conditional extension and right of first refusal sections, comprehensive representations and warranties for both grantor and grantee, environmental and property condition provisions, notary acknowledgment blocks, and Exhibit A for legal property descriptions.
An option to purchase agreement gives one party the exclusive right, but not the obligation, to buy a specific property at a predetermined price within a defined time period. The property owner receives an option fee for keeping the property available during the option period.
In most cases, the option fee is non-refundable. It serves as consideration for the grantor's promise to keep the property available. However, many agreements allow the fee to be credited toward the purchase price if the option is exercised.
To exercise an option, you must deliver written notice to the grantor within the option period following the specific notice requirements in the agreement, typically by certified mail, overnight courier, or hand delivery.
Whether an option is assignable depends on the agreement terms. Some allow free assignment to third parties, while others require the grantor's consent or prohibit assignment entirely. This generator lets you configure the assignment provision to match your needs.
If the grantor refuses to honor the option after valid exercise, the grantee can pursue specific performance (a court order compelling the sale) or seek monetary damages. Courts generally grant specific performance for real estate because each property is considered unique.
Recording the option or a memorandum with the county recorder is recommended to provide constructive notice to third parties, preventing the grantor from selling to another buyer. Upon expiration or termination, the grantee should execute a release to clear title.