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Real Estate Option To Purchase Agreement Template for Nigeria

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Key Requirements PROMPT example:

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."

Document background
The Real Estate Option To Purchase Agreement is a crucial document in Nigerian property transactions, providing a structured framework for property acquisition negotiations. It is particularly useful when parties need time to arrange financing, conduct due diligence, or secure necessary approvals before completing a property purchase. The agreement must comply with Nigerian legal requirements, including the Land Use Act 1978 and state-specific property laws. It typically includes detailed property descriptions, option terms, purchase price, exercise conditions, and relevant land use permissions. This document is commonly used in commercial real estate developments, investment properties, and large-scale land acquisitions, offering protection to both the property owner and potential purchaser during the option period.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses



































Relevant Industries

Real Estate

Property Development

Construction

Commercial Property

Residential Property

Industrial Property

Banking & Finance

Legal Services

Urban Development

Agriculture (for farmland options)

Relevant Teams

Legal

Real Estate

Property Management

Business Development

Compliance

Finance

Investment

Operations

Risk Management

Facilities

Relevant Roles

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

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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