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Agreement For Acquisition Of Purchase Option
AGREEMENT FOR ACQUISITION OF PURCHASE OPTION
This agreement is effective as of [date of agreement], between [name of broker], of [address of broker] hereinafter referred to as broker, and [name of owner], of [address of owner] hereinafter referred to as
client.
PART I.
DUTIES OF BROKER
The client authorizes the broker to act as [his or her] agent to obtain an option from [name of optionor], of [address of optionor], to purchase property located [address of property], owned by [name of owner] in fee simple and [unburdened by easements, or burdened only by the following easements:], at a price of $[Purchase price] or less.
PART II.
BROKERS COMMISSION
The client promises to pay the broker a commission of $[Amount of commission] or [Percent commission]% for procurement of the stated option.
PART III.
CONDITIONS FOR RIGHT TO COMMISSION
The covenant to pay broker the commission is expressly conditioned on:
1. Ability of [name of owner] to convey a fee simple title;
2. A determination that the property does in fact conform to the legal description set forth above; and
3. A determination that the property is in fact unencumbered by easements other than as set forth above.
PART IV.
FAILURE TO EXERCISE OPTION
Client expressly understands and agrees that [his or her] failure to exercise an option for any reason other than a defect noted above will not impair brokers right to the commission established in this agreement. The commission will remain payable [Number of days to pay commission] days after delivery to client of the option.
PART V.
TERM
This agreement shall expire [number of days before expiration] days from the above written effective date. The at that time must return the funds tendered pursuant to this agreement for use in procuring an option.
The broker has no right to a commission for any option consummated after days from the above written effective date
PART VI.
CLIENT NOT TO INTERFERE WITH AGENCY
The client hereby agrees that [he or she] will not communicate with or interfere in any way during the term of this agreement and agrees that brokers commission will be due and payable if any violation by client of this covenant prevents broker from obtaining an option.
PART VII.
GOVERNING LAW
It is agreed that this agreement shall be governed and enforced in accordance with the laws of the State of [state of jurisdiction].
PART VIII.
BROKERS COVENANTS
1. Broker acknowledges receipt of $[Amount paid for option] intended to acquire the option.
2. Broker further covenants to act as the client would with respect to negotiations dealing with [name of owner].
3. Broker must maintain a record of all activities relevant to negotiations with [name of owner] and to keep such records for [number of years to keep files] years after this agreement.
In witness whereof, each party to this agreement has caused it to be executed at [location of execution] on [date of execution].
Signature Date
Signature Date