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How to White Out Option To Buy Agreement

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In this video, Jerry Norton discusses the importance of understanding option agreements in wholesaling real estate, particularly when dealing with motivated sellers willing to sell at a discount. He explains when it's more advantageous to use an option agreement instead of a purchase agreement. The tutorial includes a real-life example of him conversing with a seller. Norton, a former broke individual who became a millionaire by flipping houses, aims to teach viewers the skills needed for success in wholesaling and flipping real estate. The video is sponsored by Flipster, a leading real estate software for finding funding and flipping houses.

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What is option purchase agreement?

An option agreement is a contract between the owner of a property and a potential buyer, giving the buyer the right to serve notice upon the seller to sell the property either at an agreed price or at its market value. Often, the purchaser will pay the seller a fee for entering into an option agreement.

What is an option purchase agreement in film?

An agreement granting an option to purchase the rights in an existing original screenplay for a feature film. The option is for an initial period, which the potential purchaser can extend by a further set period.

What is the benefit of an option agreement?

An option agreement provides for the landowner to profit from the enhanced value of their land as a result of planning permission being granted, without having to go through the planning process themselves. The landowner may also receive an option fee.

What is a knock out clause?

A kick-out clause allows home sellers to continue showing and accepting offers even after accepting a contingent offer. A kick-out clause is a provision in a homes sales contract that allows sellers to accept a contingency while still showing their home in hopes of receiving a non-contingent offer.

What are the disadvantages of an option agreement?

The main disadvantage of option agreements for sellers is that there is no guarantee of sale, seeing as the buyer only has the option to buy. In addition, the property will not be put on the open market for third parties to make offers. Meaning that the landowner may receive considerably less from a developer.

How do you exercise options to purchase?

An Option to Purchase is exercised when a buyer decides that he wishes to purchase the property, signs the acceptance copy and pays the balance deposit for the property (see below).Some details include: Full names; Identification numbers; Contact numbers; and. Registered addresses.

Can I back out of an option to purchase?

If a seller renege on the sale, he/she has to refund the Option Fee to the buyer. Similarly, if the buyer backs out of the purchase, the Option Fee is forfeited to the seller. More importantly, the buyer can apply to Court for specific performance to compel to the other party to complete the transaction.

What is the difference between an option and a purchase contract?

The Supreme Court made clear that a purchase agreement that includes a buyer right to terminate for any reason prior to expiration of a contingency, due diligence, feasibility, or free look period is really an option agreement. Option agreements are unenforceable unless consideration is given for the option.

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White Out Option To Buy Agreement