This addendum is used to automatically extend the term of the option agreement in the case you find a buyer to give enough time for closing. It also terminates the option agreement in the case the seller’s agent finds a buyer. This addendum gives security to both you and the seller and can help overcome the seller’s objection to you tying up their house. It allows them to keep their house on the market while you attempt to find a buyer.
Revised 04/28/2014
this form is a money maker you folks need to thank big Ron
Love this one it’s so nice to put these protection form in
This is the form to use so the term of the option can be extended a reasonable length of time to give you additional time to finish up the deal with your tenant buyer.
This helps prevent you from losing the deal at the last second because of something holding the deal up.
This form also allows the seller’s Realtor to keep trying to sell the property, at the same time you are trying to sell the property.
So basically you’ve got a non-exclusive option.
You can use this to overcome the sellers objection about using a Realtor.
Well, I trade share options a fair amout of times, so here goes. First, I assume you are buying naked call options and rhen putting a stop loss in for a 10% decline in price. Options, unlike stocks trade very thinnly and therfore tend to be more volatile. So a stop should be only good for the day, but if it went out in a day, you should have increased the %.
You can’t open it, you can’t download it, You can’t see it? de?
this form is not easy to see
Question, How does the Realtor fell about us having an option on the property to buy?, at what point does a Realtor become involved in comparison of when we get involved? Please advise: THANKS
Andre, There may be two possibilities for when the realtor becomes involved.
First, if you already had an option to buy before the realtor got involved, the seller would have to disclose that to his agent. Then the agent would have to decide whether he still wants to work with the seller. I would imagine that the agent would still take the listing because this addendum specifically says that you would cancel your option if the agent brings a valid offer–so that protects the seller-agency relationship with his realtor. The circumstances may depend on the state’s agency laws too.
Second, if the realtor had a listing before you came along, the listing would have to permit the seller to collect and negotiate offers from buyers he finds independent of his agent, so that you and the seller don’t have to work through his agent.
But this raises an important issue: you should always ask a seller if he’s working with an agent. (This question is on Ron’s prescreening sheet in the “Is the house listed?” blank.
By the way, this is a good reason for you to record a “notice of option” so that if the seller neglects to mention the option to his agent, your interest will be discovered when the title search is done by the buyer’s title company.
Sorry for long-winded answer. Hope that helps and that I understood your question correctly!
When I Try To Down Load This One & Any Lower
IT DON”T WORK
Great form!!!!
Is it possible to set the Addendum to Option to Purchase Agreement To say 60-90 days after we get the clear to start getting a buyer in place?
Sorry I don’t mean to double post, but I posted:
“Is it possible to set the Addendum to Option to Purchase Agreement To say 60-90 days after we get the clear to start getting a buyer in place?”
I don’t think I asked clearly enough. What I mean is, Could we reassure the seller that
“We have some safety precautions built in just to keep you protected. If after say 60-90 days, I prefer 90 myself.. Give me at least the chance to do what I’m specialized in. But after 90 days, if you get an offer that you’re really happy to take, then after our predetermined time the Addendum can now move into place.”
Is that possible?
My seller doesn’t want his hands tied after he signs the agreement.
I can see how this would put the seller at ease
Do you have these forms in PDF please
Brilliant! So good to have this in my back pocket in case Seller gives pushback and needs a little reassurance.