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Option to Purchase Package - Nevada

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The document is a guide for the 'Nevada Option to Purchase Package' provided by U.S. Legal Forms, Inc., which includes various legal forms related to real estate transactions. It outlines the purpose of an option agreement, lists included forms such as residential and commercial purchase options, provides descriptions of each form, offers tips for completing them, and includes a disclaimer regarding the use of these materials.

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How long can an option to purchase last?

An option-to-purchase contract must conspicuously state the duration of the option period. There is no correct or preferred unit of time and option periods can range from months to years. Typically, however, in the residential context, option periods range from one-to-five years.

What is an example of buying an option?

Example 1 - Buying a Call: In anticipation of this price increase Josh buys a call option on XYZ with a strike price of $120, and an expiration date 2 months out. This gives Josh the right, (but not the obligation) to buy 100 shares of XYZ for $120 per share before his call option expires worthless.

What is considered an option to purchase?

An option to purchase real estate is a contract by which an owner of real estate agrees with another person that the latter shall have the privilege of buying the property at a specified price within a specified time. However, no obligation to purchase is imposed upon the person to whom the option is given.