What Is A Option Agreement

Landowners often confuse option agreements with pre-emption agreements. The latter only give the potential buyer the right of first refusal if the seller decides to sell, whereas an option contract is a legally binding contract. In other words, if you manage to complete the event on which the execution of the option depends, for example .B obtaining the building permit, you will have to sell your land, even if other circumstances have changed. That`s why good wording is so important. An option contract is a contract by which a company gives a buyer the opportunity to buy new shares in the future. It is important to note that unlike an option contract, once you have entered into a conditional contract, you will be obliged to complete the purchase once the conditions precedent are met. This may only give you a short time to get financing (if needed). Therefore, you cannot simply withdraw from the transaction if your situation changes…

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