Need help filling out an Option Agreement when I find the End Buyer

[david33185]

Ok the seller of a property gives me "control" via an option agreement to market his property to an end buyer for whatever i price i want. So on the option agreement it would say "Optionee has the option to purchase this property at $10,000" 


So when i find the end buyer that im selling the property too for lets say $20,000 what do i do? Do i just make him fill out a Purchase Contract or do i just introduce him to the original seller that i have the option with and they go to closing???

[DemosL]

You can:
1) assign your Option to Purchase agreement to the end buyer for your assignment fee, and be on your merry way, or;
2) exercise your option to purchase and write up a Purchase and Sale  contract, then assign it to the end buyer.

I oversimplified things. If the buyer won't give you your total assignment fee up front, you'll have to do step 2 and collect a smaller non-refundable deposit. Then, you would take the Purchase and Sale contract and the assignment of contract and givve them to a settlement attorney to start the closing proceedings. At closing, you'll collect the remainder of your assignment fee.

[david33185]

DemosL,

So if i choose #2 to "exercise my option to purchase and write up a purchase and sale contract, then asssign it to the end buyer " what are the steps involved to do this?

[DemosL]

Notify the seller verbally or in writing that you're going to exercise your option to purchase.

Write up a contract to purchase the seller's house at the same price or new price as the Option to Purchase agreement.

Use an Assignment of Contract to assign the new contract to the end buyer.