(local time where the Property is located) by the date specified.If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract.That phrase is used often in real estate and it simply means that if you don’t meet a deadline, there are consequences.In this case, there are two very important deadlines. This fee must be paid to the seller within three days of the effective date of the contract (which is written on the contract when all parties sign off on it – just below Paragraph 24 and just above the signature line).The amount of money (option fee) and the length of time (option period) are negotiable items between the parties to the contract.The final question is whether the money will be credited back at closing – typically we see that it “will” be credited.
Previously, it expired at pm (like most contract items).
As of January 1, 2016, the language in this paragraph has changed and it’s worth taking a fresh look at what is in there. TERMINATION OPTION: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer’s agreement to pay Seller $______ (Option Fee) within 3 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within ___ days after the effective date of this contract (Option Period).
Notices under this paragraph must be given by p.m.
The option period is a very useful tool for the buyer and allows the seller some compensation if a buyer does decide to terminate the contract within the option period timeframe.
There are times when an option period might not be wanted, longer time periods asked for, or larger option fees are warranted, and we advise you to discuss the different options and methods with your agent to achieve the results you’re after.