Option Contract to Purchase Real Property - Form

OPTION CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This Option Contract (the "AGREEMENT") is made and executed at the City/Municipality of _____________________, Province of _____________________, this day of _________________, by and between:

________, Filipino, of legal age, single, and with address at ________, hereinafter referred to as the "SELLER",

-and-

________, Filipino, of legal age, single, and with address at ________, hereinafter referred to as the "BUYER",

and are collectively known as the "PARTIES"

WITNESSETH:

WHEREAS, the SELLER is the registered owner of the following property:

A parcel of land, situated at ________ more particularly described as follows:

________ (the "PROPERTY")

WHEREAS, the BUYER has offered to buy the PROPERTY and the SELLER agreed to accept the said offer and grants exclusive right on the part of the BUYER to buy the PROPERTY with the duration agreed upon at the price set hereunder.

NOW THEREFORE, for and in consideration of the foregoing premises and mutual covenants herein contained, the SELLER hereby agrees to grant to the BUYER the exclusive right to purchase the PROPERTY and the BUYER agrees to pay the fixed price as stated hereunder, subject to the following terms and conditions:

1. Exercise of Option. The BUYER shall have the right to exercise the option to purchase the PROPERTY within: ________, following the date of execution of this AGREEMENT by the PARTIES. (the "PERIOD") It is agreed upon by the PARTIES that the exercise of the option means that a contract to sell or a deed of absolute sale shall be subsequently executed to enable the BUYER to purchase the PROPERTY.

2. Option Money. The Option Money which is the consideration for the execution of this AGREEMENT shall be ________ (₱________). It is agreed upon by the PARTIES that the above amount shall form part of the purchase price of the PROPERTY, and the payment of the Option Money shall be deducted from the purchase price of the PROPERTY in the event the BUYER exercises the option.

3. Payment. The Option Money shall be paid at the time this AGREEMENT has been executed.

Further, the Option Money shall be paid by depositing the amount in the following account:

Account number: ________
Account name: ________
Bank/E-wallet: ________

4. Purchase Price. The PARTIES agree that in the event that the BUYER exercises the right to purchase the PROPERTY within the PERIOD, the PROPERTY shall be sold at the rate of ________ (₱________) per square meter.

5. Failure to Exercise the Option. The BUYER agrees that failure to exercise the option to purchase the PROPERTY within the PERIOD shall result in the forfeiture of the Option Money in favor of the SELLER.

Further, the rights of the BUYER under this AGREEMENT shall be also considered forfeited or terminated due to the failure to exercise the option within the PERIOD which shall allow the SELLER to sell, offer to sell, donate, or otherwise dispose of the PROPERTY to any other person after the lapse of the PERIOD.

6. Interpretation. This AGREEMENT shall not be construed or interpreted as a contract to sell or a deed of sale between the PARTIES. Further, the payment of the Option Money shall not be considered as payment of Earnest Money, even if the PARTIES have agreed that the Option Money forms part of the Purchase Price for the sale of the PROPERTY.

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8. Applicable Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the Republic of the Philippines.

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10. Amendments and Modifications. This AGREEMENT may be amended only by a written instrument signed and agreed upon by both PARTIES.

IN WITNESS WHEREOF, the PARTIES have hereunto affixed their signatures on the date and place first stated above.

________
Seller

________
Buyer

ACKNOWLEDGMENT

Republic of the Philippines
Province of _____________________ )
City or Municipality of _____________________ )S.S.

BEFORE ME, a Notary Public, for and in City or Municipality of _____________________, _____________________, this _______ day of _____________________, 20______, personally appeared the following persons:

1. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________;

2. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________.

All known to me to me and to me known to be the same persons who executed the foregoing OPTION CONTRACT and they acknowledged to me that the same is their free and voluntary act and deed.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal on the date and at the place written above.

Doc. No. _________;
Page No. ________;
Book No. ________;
Series of ________.