OPTION TO PURCHASE REAL ESTATE
This Option to Purchase Real Estate is made on this the 1st day of January, 2013, by and between Anxious Xxxxxx Xxxxx hereinafter referred to as the “SELLER” and Frantic Xxxx Xxxxxx and his assigns, hereinafter referred to as the “PURCHASER”.
WHEREAS, Purchaser desires to obtain an Option to Purchase certain real estate owned by Seller; and
WHEREAS, Seller agrees to grant Purchaser an option to purchase said real estate pursuant to the terms of this agreement;
NOW, FOR AND IN CONSIDERATION of $5,000.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:
1. GRANT OF OPTION: The Seller does hereby grant unto the Purchaser the exclusive and irrevocable option to purchase, upon the terms and conditions hereinafter set forth, Seller’s property situated in the County of Sassafras, State of Confusion, which property, and all improvements thereon, described in Exhibit “A” attached hereto and incorporated by this reference as if fully set forth herein.
2. EXERCISE OF OPTION: This option to purchase may only be exercised by Purchaser on or before June 1, 2013. Failure to exercise the option shall result in its expiration at midnight, June 1, 2013.
3. TERMS OF PURCHASE: In the event Purchaser desires to exercise the Option granted under the terms of this agreement, the terms of purchase shall be $500,000.00 cash payable at closing.
4. TITLE: Within fifteen (15) days after the Purchaser has given notice of the exercise of the option to purchase, the Seller shall deliver to the Purchaser a Certificate of Title or title abstract covering the property described in paragraph 1, above, which shall reflect that marketable fee simple title to the subject property is vested in Seller and that same is insurable by a title insurance company licensed to do business in the State of Confusion. Said Certificate or abstract shall be subject only to taxes for the current year, easements, and rights of way of record, and prior mineral reservations. Should said Certificate or Abstract reflect any other exceptions to the title unacceptable to Purchaser, Purchaser shall notify the Seller in writing of any defects within fifteen (15) days (the title review period) and the Seller shall have a reasonable time (but not more than 25 days) in which to make the title good and marketable or insurable, and shall use due diligence in an effort to do so. If after using due diligence the Seller is unable to make the title acceptable to Purchaser within such reasonable time, it shall be the option of the Purchaser either to accept the title in its existing condition with no further obligation on the part of the Seller to correct any defect, or to cancel this Agreement. If this Agreement is thus cancelled, all money paid by the Purchaser to the Seller upon the execution of this Agreement or upon any extension shall be returned to the Purchaser, and this Agreement shall terminate without further obligation of either party to the other. If title is acceptable to Purchaser, the closing shall occur within fifteen (15) days after expiration of the “title review period”. At closing Seller shall convey title to Purchaser by Warranty Deed subject only to exceptions acceptable to Purchaser.
5. OPTION MONEY: Upon execution of this agreement, Purchaser has paid unto Seller the sum of $5,000.00 as “Option Money.” The Option Money shall not be deducted from the purchase price of the property and is paid to Seller as consideration for and to make this agreement valid.
6. TERM AND EXTENSION: The term of this agreement shall be five (5) months from that date hereof, which results in expiration at 12 midnight on June 1, 2013. This agreement may be extended one (1) time for an additional six (6) months by Purchaser paying unto Seller, in cash, an additional sum of $10,000 prior to the expiration of the initial term. No additional extensions shall be implied or permitted unless the parties shall execute a written contract setting forth the terms and conditions of such extension.
7. EXPENSES OF SALE: All costs and expenses of the sale including Purchaser’s attorney’s fees, recording fees, and any and other costs attributable to the preparation of the Warranty Deed, Title Certificate, abstract and any other closing documents shall be paid by Purchaser; provided, however, any expenses incurred by seller in performing Seller’s obligations hereunder Shall be paid by seller.
8. POSSESSION: Purchaser shall be entitled to possession of the property at closing.
9. RIGHT OF ENTRY: Upon notification by Seller of his or her desire to sell and Purchaser’s exercise of the option, Purchaser shall be entitled to enter upon the property for the purpose of conducting such soil tests, engineering studies, surveys and inspections as purchaser deems appropriate.
10. TAXES: Taxes shall be prorated as of the date of closing.
12. DEFAULT: This contract shall be binding upon and inure to the benefit of the heirs, administrators and assigns of the parties hereto and upon default in any of the terms of this Agreement the defaulting party agrees to pay all costs of Court and a reasonable attorney’s fee.
13. ASSIGNMENT: This Option to Purchase is assignable by the Purchaser at the sole and absolute discretion of Purchaser.
14. GOVERNING LAW: This agreement shall be governed by the laws of the State of Confusion.
IN WITNESS WHEREOF, the parties have executed this Agreement on this the 1st day of January 2013.
STATE OF CONFUSION } COUNTY OF SASSAFRAS}
PERSONALLY appeared before me, the undersigned authority in and for the county and state aforesaid, the within named Anxious Xxxxxx Xxxxx and Frantic Xxxx Xxxxxx, who each acknowledged that he signed and delivered the foregoing agreement on the day and year therein stated.
GIVEN under my hand and official seal this 1st day of January 2013.
My Commission Expires: July 4, 2015