option-to-purchase

name	option-to-purchase
title	Option to Purchase Real Estate
description	Drafts Option to Purchase Real Estate agreements granting an optionee the exclusive right to buy property within a specified timeframe. Trigger when user needs a real estate option agreement, purchase option, right-to-purchase contract, or option-to-buy instrument for residential transactions.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/option-to-purchase
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	real-estate
language	en
tags	["agreement","drafting","transactional"]

Option to Purchase Real Estate

Unilateral option contract granting the Optionee an exclusive right to purchase real property under predetermined terms within a defined period.

Prerequisites

Collect before drafting:

1. Parties — legal names, entity types, addresses, jurisdiction, authority docs (POA, corporate resolution)
2. Property — current deed with legal description, survey, encumbrances/easements/CCRs, title commitment
3. Deal terms — purchase price (fixed or formula), option consideration, option period, credit treatment, financing
4. Jurisdiction — state where property sits (controls recording, disclosures, statutory language)

Quick Start

1. Gather all prerequisites and confirm governing jurisdiction
2. Draft sections in order below, defining all capitalized terms on first use
3. Attach exhibits: legal description, survey, exercise notice form, deed form
4. Run pitfall checklist before delivery

Core Sections

1. Parties

• Optionor: legal name (as on deed), entity type, address, state of organization
• Optionee: legal name, entity type, address, jurisdiction
• Representatives: if via POA/agent, state authority and reference instrument
• Assignability: assignable or personal to named Optionee
• Capacity representations, especially for entity parties

2. Property Description & Title

• Full legal description (lot, block, subdivision, county, state) + street address
• Known encumbrances, easements, CCRs, mortgages/liens, HOA obligations
• Title standard: marketable and insurable, free of unaccepted encumbrances
• Title commitment delivery obligation and cost allocation
• Included fixtures/appurtenances; excluded items

3. Option Period

• Commencement: specific date
• Expiration: specific date, time, and time zone
• Time of the essence: global or provision-specific
• Extensions: conditions, additional consideration, force-majeure/title-defect triggers
• Maintenance payments (if lengthy): periodic amounts, non-payment consequences

4. Option Consideration

• Dollar amount; non-refundable except for Optionor breach or title failure
• Payment timing: lump sum at execution or installment schedule
• Credit toward purchase price upon exercise — yes/no