Option to Purchase Real Estate Agreement
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While the information contained herein is designed to provide accurate and authoritative information in regard to the subject matter covered, it is offered with the understanding that the presenter(s) are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert advice is required, the services of a competent professional should be sought.
Personal Note from AIG:
This is a simple, 1-page option agreement that many folks popularly refer to as a “Flexible Option”. Basically the main difference between this and an ordinary option is that it removed all risk for the seller/Optionor by giving them an easy “out” at any point before you decide to exercise your option. And it’s non-exclusive.
Great uses for this option in my business:
To gain an equitable interest in a property that I may or may not be able to find a buyer to quick-flip it to. It’s an easy sell to the homeowner, “Let me give it a try – with this flex option in place I can try and drum up a buyer with no risk to you…if you find someone else before I do, no problem. You can just cancel our agreement in writing and we go our separate ways.”
To gain an equitable interest in another investor’s deals, to see if I can find a buyer for them and get paid in the middle.
To give other investors the ability to shop my deals to their buyers