Buying a home that gave a tenant an option to buy

[Jason Drayer]

We are currently working a deal to purchase a home. It has current tenants, which we are not concerned with, but it also provided them an option to buy until 12/31/2020.

This additional clause was added to the lease:

 “ 29. This property is for sale. If an offer is made and accepted with funding approval from a bank, the tenants will have 60 days to vacate the premises unless the purchase is being made by the tenants."

The Option to Purchase section had the below info:

47. Provided the Tenant is not currently in default in the performance of any term of this Lease, the
Tenant will have the option to purchase (the "Option") the Property for $XXXXXX (the "Purchase
Price").

48. This Option may only be exercised at any time prior to its expiration at midnight on December 31,
2020. Upon expiration of the Option, the Landlord will be released from all obligations to sell the Property to the Tenant. If the Tenant does not exercise the Option prior to its expiration, all rents and other charges paid under this Lease will be retained by the Landlord, and neither Party will have any further rights or claims against each other concerning the Option.

51. The Landlord warrants to the Tenant that the Landlord is the legal owner of the Property and has the
legal right to sell the Property under the terms and conditions of this Lease.

It’s hard to tell from a legal perspective, but with the additional clause added does it appear that we can purchase the home before 12/31/20 or should we draw up a contract with the closing date in January?