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Real Estate Option To Purchase Agreement
"I need a Real Estate Option to Purchase Agreement for a commercial property in Lagos, Nigeria, with a 6-month option period starting March 1, 2025, where the potential buyer will pay a 5% option fee that will be credited towards the final purchase price if the option is exercised."
1. Parties: Identifies and defines the Option Grantor (property owner) and Option Holder (potential purchaser), including full legal names and addresses
2. Background: Establishes the context, including property ownership status and parties' intention to enter into an option arrangement
3. Definitions: Defines key terms used throughout the agreement, including Property, Option Period, Strike Price, etc.
4. Grant of Option: Specifies the exclusive right being granted to purchase the property within the option period
5. Option Period: Defines the duration of the option and any extension provisions
6. Option Fee: States the consideration paid for the option and whether it's applicable to the purchase price
7. Exercise of Option: Details the process and requirements for exercising the option
8. Purchase Price: Specifies the agreed purchase price (Strike Price) and payment terms
9. Property Title and Land Use Act Compliance: Confirms property ownership status and compliance with Nigerian Land Use Act requirements
10. Representations and Warranties: Standard representations by both parties regarding capacity, authority, and property condition
11. Default and Termination: Specifies events of default and termination rights
12. Notices: Details how formal communications between parties should be made
13. Governing Law: Confirms Nigerian law governance and jurisdiction
14. Execution: Signature blocks and attestation requirements
1. Due Diligence: Optional section detailing the buyer's right to conduct property investigations, used when the option period includes a due diligence phase
2. Property Management: Used when specific arrangements are needed regarding property maintenance during the option period
3. Assignment Rights: Include when either party needs the right to assign the option agreement
4. Environmental Matters: Important for properties with potential environmental concerns or when required by local regulations
5. Planning Permissions: Include when the option exercise is contingent on obtaining specific planning or development approvals
6. Tenant Rights: Required if the property is currently leased to tenants
7. Multiple Properties: Used when the option covers multiple properties or land parcels
8. Force Majeure: Optional clause for addressing unforeseen circumstances affecting option exercise
1. Schedule 1 - Property Description: Detailed legal description of the property, including boundaries, certificates of occupancy, and land use details
2. Schedule 2 - Option Fee Payment Terms: Details of option fee payment structure and timing
3. Schedule 3 - Form of Option Exercise Notice: Template notice for exercising the option
4. Schedule 4 - Purchase Price Calculation: If applicable, formula or mechanisms for determining final purchase price
5. Schedule 5 - Property Documents: List of all relevant property documents, certificates, and permits
6. Appendix A - Property Plans: Maps, surveys, and plans of the property
7. Appendix B - Land Use Approvals: Copies of relevant government approvals and certificates
Authors
Real Estate
Property Development
Construction
Commercial Property
Residential Property
Industrial Property
Banking & Finance
Legal Services
Urban Development
Agriculture (for farmland options)
Legal
Real Estate
Property Management
Business Development
Compliance
Finance
Investment
Operations
Risk Management
Facilities
Real Estate Manager
Property Developer
Legal Counsel
Real Estate Attorney
Property Manager
Investment Manager
Land Administrator
Development Director
Real Estate Agent
Property Surveyor
Facilities Manager
Real Estate Investment Analyst
Asset Manager
Acquisition Manager
Compliance Officer
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