Difference Between An Option Agreement And A Conditional Contract

An option agreement contractually binds the seller to the buyer for a specified period of time, not the other way around. In this type of contract, the buyer has the freedom to decide whether or not to buy and does not have to give the seller a reason. Our commercial real estate lawyers are able to help clients who have a large number of option contracts, but not with lease option agreements. A conditional contract is an agreement or contract that depends on a particular event whose entry is uncertain at the time of the agreement. A common example is a contract that depends on the buyer`s building permit. This type of contract is often used when the country belongs to different parties and a developer may want to ensure the sale of all units or no warranty at all. The contract will likely have a deadline, so make sure you have enough time to resolve the issues in question. It is simply a sales contract in which a condition (or several conditions) are written that require something to happen before the contract is concluded. This allows you to accept the purchase and the price you pay for the property, but ensures you time between exchange and completion in order to solve any problems that need to be resolved. An option agreement is less attractive to a seller because it is not up to the seller to know whether the sale is actually concluded. While the land is bound by an option contract, the seller cannot transfer it to another buyer. However, the buyer usually pays a non-refundable down payment for an option agreement, which may be worth it, depending on the amount, for a seller who is in no hurry to sell the land.

The option period is the period during which you have the opportunity to trigger the option and continue the purchase of the country. You must send the landowner an “option notification”, on which an acommony must normally be made and a binding contract is concluded. . . .