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OPTION TO PURCHASE



This Option to Purchase (the Agreement) is effective [DATE],

BETWEEN:  [YOUR COMPANY NAME] (the "Purchaser"), an individual with his main address located at:

      [YOUR COMPLETE ADDRESS]


AND:  [SECOND PARTY NAME] (the "Vendor"), an individual with his main address located at:

      [COMPLETE ADDRESS]


OPTION TO PURCHASE

I, the undersigned, [SECOND PARTY NAME] (the "Vendor") residing at [FULL ADDRESS], [State/Province] of [STATE/PROVINCE], in consideration of the sum of [AMOUNT] ($[AMOUNT]) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant to [YOUR COMPANY NAME] (the "Purchaser") an irrevocable option to purchase from me the immoveable property in the City of [CITY] more specifically described below (the Option).


DESCRIPTION

That certain emplacement known as Lot Number [NUMBER] on the Official Plan and Book of Reference for the City of [CITY], [State/Province] of [STATE/PROVINCE], having a frontage of approximately [NUMBER] feet and a depth of approximately [NUMBER] feet (the Property).


PURCHASE PRICE

The total purchase price for the Property shall be $[AMOUNT] ($[AMOUNT]) (the Purchase Price).


TERM AND EXERCISE

This Option to Purchase shall be valid for the period of [NUMBER] ([NUMBER]) months commencing on [DATE] and terminating at midnight, [DATE] (the Term). [YOUR COMPANY NAME] may exercise the Option at any time prior to the expiration of the Term by notice in writing to that effect, delivered by hand or sent by prepaid registered mail to the Vendor, [FULL ADDRESS]. Should [YOUR COMPANY NAME] not exercise the Option prior to the expiry of the Term, this Option to Purchase shall forthwith be null and void and of no further effect.


LEASE

For the period of the Term, the Vendor shall lease the Property to [YOUR COMPANY NAME] on the terms and conditions set out in the following subsections and unless [YOUR COMPANY NAME] exercises the Option during the [NUMBER] ([NUMBER]) months of the Term, the Vendor shall be bound to lease the Property for the entire duration of the Term:
Rent

The rent for the Term shall be $[AMOUNT] ($[AMOUNT]) (the Rent), payable by [YOUR COMPANY NAME] by check in equal and consecutive monthly installments of $[AMOUNT] DOLLARS ($[AMOUNT]) (the Rental Installments), in advance on the [NUMBER] ([NUMBER]) day of each month during the Term.

Premises

The lease contemplated in this Section 5 shall include the Property and the land and buildings erected thereon (referred to in this Section as the Leased Premises) as well as all moveable property of whatsoever kind or description contained in the Leased Premises, including tools, machinery, furniture, appliances, utensils, decorations as well as other objects which are destined to furnish and ornament the said buildings (referred to in this Section as the Moveable Effects).

5.3  Electricity and Utilities

The cost of supplying all electricity and utilities, used or consumed in the Leased Premises during the Term shall be borne by [YOUR COMPANY NAME].

5.4  Other Obligations

During the Term, [YOUR COMPANY NAME] shall: (i) maintain the Leased Premises in a habitable condition and in a good state of repair and (ii) not remove any of the Moveable Effects from the Leased Premises.

5.5  Idem

[YOUR COMPANY NAME] agrees to pay the Rental Installments and the electricity and utility charges pursuant to this Section 5 solely in consideration of the Vendor leasing the Leased Premises to [YOUR COMPANY NAME] for the Term. Should [YOUR COMPANY NAME] not exercise the Option, he shall have no right or recourse against the Vendor for any of the amounts paid pursuant to this Section 5.

5.6  Expiry of Term

Should [YOUR COMPANY NAME] not exercise the Option, [YOUR COMPANY NAME] agrees that at the expiration of the Term he shall: (i) leave the Leased Premises in a clean condition and in a good state of repair and (ii) leave all Moveable Effects in the same condition they were in at the beginning of the Term.


PURCHASE TERMS AND CONDITIONS

Should [YOUR COMPANY NAME] exercise the Option, the Vendor undertakes to sell and transfer ownership of the Property to [YOUR COMPANY NAME] within [NUMBER IN LETTERS] ([NUMBER]) days of the date of exercise of the Option, upon the following terms and conditions:

6.1  Payment

[YOUR COMPANY NAME] shall pay the Vendor the Purchase Price less the amount of the Rent, thereby reducing the amount owing to the Vendor at the date of the signing and execution of a Deed of Purchase and Sale to [AMOUNT] ($[AMOUNT]).

However, should [YOUR COMPANY NAME] exercise the Option at any time during the first [NUMBER ([NUMBER]) months of the Term, then he shall pay the Vendor the Purchase Price less the amount of Rental Installments previously paid by the date of exercise of the Option.

6.2  Property

The sale and transfer of the Property shall include the land and buildings erected thereon and all moveable property of whatsoever kind or description contained in the said buildings including tools, machinery, furniture, appliances, utensils, decorations as well as other objects which are destined to furnish and ornament the buildings.

Exception

The sale and transfer of the Property shall not include items which shall be identified by the Vendor prior to the signing and execution of a Deed of Purchase and Sale.

Title

The Vendor shall sell and transfer to [YOUR COMPANY NAME] ownership of the Property with good and marketable title and legal warranty, free and clear of all hypothecs, privileges, servitudes, public reserves, arrears of taxes and of all other encumbrances whatsoever, save for servitudes in favor of public utilities which do not materially affect the use and enjoyment of the Property.

Title Deeds and Plans

The Vendor shall deliver to [YOUR COMPANY NAME] within [NUMBER] ([NUMBER]) days of the date of exercise of the Option copies of all title deeds, certificates of location, plans and certificates of search relating to the Property which he may have in his possession.

Defects

[YOUR COMPANY NAME] shall have a period of [NUMBER IN LETTERS] ([NUMBER]) days from the date of exercise of the Option within which to examine the title to the Property. If the title to the Property is not good and marketable or should the Property not be free and clear as aforesaid, [YOUR COMPANY NAME] shall have the right to require the Vendor by written notice to correct any title defect and/or remove any encumbrance, the whole at the Vendors expense, within [NUMBER IN LETTERS] ([NUMBER]) days of receipt of the said notice. If no notice is sent, [YOUR COMPANY NAME] shall conclusively be deemed to have accepted the Vendors title to the Property as is.
If the Vendor is unable or unwilling to remedy the said defects and/or remove the said encumbrances within the said [NUMBER IN LETTERS] ([NUMBER]) day period, he shall so notify [YOUR COMPANY NAME] in writing within the same period. [YOUR COMPANY NAME] shall then have the right either (i) to purchase the Property notwithstanding such title defects and/or encumbrances and complete the transaction contemplated herein with legal warranty or (ii) to terminate the agreement resulting from this Option to Purchase without further right or recourse by either party against the other.

6.7  Closing

The signing and execution of a Deed of Purchase and Sale in respect of the Property shall be take place within [NUMBER IN LETTERS] ([NUMBER]) days of the date of exercise of the Option and the effective date for the transfer of ownership of the Property shall be no later than [NUMBER IN LETTERS] ([NUMBER]) days following the expiry of the Term.


MISCELLANEOUS EXPENSES

The Vendor shall pay (i) the costs of preparation of the Deed of Purchase and Sale (including copies for [YOUR COMPANY NAME] and (ii) all transfer duties, if any, payable in connection with the purchase of the Property.

8.  TENDERS

Tenders of notices or money may be made upon the attorney for either party.


9.  SUCCESSORS AND ASSIGNS

The provisions of the present Option to Purchase shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, legal representatives, administrators, successors and assigns.


10.  AMENDMENTS AND WAIVER

No modification or amendment hereto shall be valid or binding unless set forth in writing and duly executed by the parties hereto. No waiver of any breach of any provision hereof shall be effective or binding unless made in writing and signed by the party purporting to give same and, unless otherwise provided, shall be limited to the specific breach waived.


11.  GOVERNING LAW

This Option to Purchase shall be governed and construed in accordance with the laws of the [State/Province] of [STATE/PROVINCE].


IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at [PLACE OF EXECUTION] on the date indicated above.


PURCHASER             VENDOR



                          
Authorized Signature          Authorized Signature


                          
Print Name and Title          Print Name and Title

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