[WSBARP] Option to Purchase Real Estate

[John M. Riley III]

Check the RPPT Deskbook.  Rights of First Refusal and Options are different. One is an absolute right to buy for a period of time on terms the parties determine at outset and one is a right to buy by matching a third party offer if the rfr grantor receives a third party PSA.


John M. Riley III
Attorney | Witherspoon * Kelley
JMR at witherspoonkelley.com<mailto:JMR at witherspoonkelley.com> | Attorney Profile <http://www.witherspoonkelley.com/john-riley-1> | vCard<http://www.witherspoonkelley.com/s/jmr.vcf>

[WK]

422 W. Riverside Ave, Ste 1100
Spokane, WA 99201
(509) 624-5265 (office)
(509) 458-2728 (fax)
witherspoonkelley.com


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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Lanza
Sent: Wednesday, May 16, 2018 2:14 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Option to Purchase Real Estate

Hello All,

I've done several Option Agreements in the past. Typically, I will prepare an Option Agreement with all of the required formalities, and attach a Purchase and Sale Agreement (with an agreed upon purchase price) as an exhibit. However, in this particular case, the parties haven't decided on a purchase price.

I want to draft the Option Agreement in such a way that it operates like a right of first refusal---whereby the Grantee of the option may purchase the property for "a price equal to any bonafide non-contingent 3rd party offer received by Grantor during the option term" (or something to that effect).

Is that language sufficiently definite to create an enforceable Option Agreement?

Would a Purchase and Sale Agreement still be a required exhibit if the Option Agreement contained the proposed language?

Has anyone prepared an Option Agreement similar to this?

Thanks,

Eric J. Lanza, J.D.
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1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net<http://www.jaglaw.net/>
eric at jaglaw.net<mailto:eric at jaglaw.net>

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