FAQ 29 Where can I find information about property options?
When considering using option contracts IT IS VERY IMPORTANT that you gather information from the seller by the use of open questioning. The answers to your questions should establish
- Why the owner is selling
- How much they want for the property
- How quickly do they want to settle. Ie. Can they afford to wait
- Do they need the whole proceeds from the sale straight away
- Are they prepared to take their property off the market for the option period.
- How much would they want to grant an option should all of the above be OK
IT IS NO GOOD ASKING A SELLER TO GRANT AN OPTION IF THEY REQUIRE THE PROCEEDS OF A SALE IMMEDIATELY.
REMEMBER THAT A CALL OPTION GIVES YOU ( THE OPTION TAKER) THE RIGHT BUT NOT THE OBLIGATION TO PURCHASE A PROPERTY, HOWEVER IT IMPOSES A BURDEN ON THE SELLER TO WITHDRAW THE PROPERTY FROM THE MARKET FOR THE FULL OPTION PERIOD WITHOUT ANY GUARANTEE OF AN EVENTUAL SALE.
Webinars have been produced which covers this topic. Please view these webinars by clicking on the links below and follow the play instructions.
/option-negotiations-and-applications/
/pacific-law-whats-an-option-8th-nov-2017/
/introduction-to-options-pt2-professionals-round-table-20170503/
/introduction-to-options-pt1-professionals-round-table-20170419/
In addition, the 3 day Ultimate Bootcamp has a session which is devoted to discussion about how options are negotiated and set up
PLEASE NOTE THAT THERE IS NO SUCH THING AS A TEMPLATE FOR AN OPTION AGREEMENT. PLEASE CONSULT WITH A LAWYER FOR A BESPOKE AGREEMENT TO SUIT YOUR EXACT REQUIREMENTS.
Pacific Law have produced an information sheet which can be accessed here
Regards
Michael & Sara
Ultimate Coaches
An investment in knowledge pays the best interest. Benjamin Franklin
