Purchase Option Contract vs Real Estate Purchase Contract

[Jessica Gourdine]

Do you use both of these contracts together or just one rather than the other?

[Brian P.]

Jessica

I always include the purchase terms in my option to control sellers that don't want to sell when they get a better offer, and seek ways to kill the option. I just used the option only when I first started for a cash price and seller was to deliver property with clear title, and free from any encumbrances.

So I exercise that attached agreement, but if I have found problems I create an amendment to it with the new stuff and if the changes are deal breakers I just keep the option going until it expires, who knows I may find a buyer who wants to take a shot.

Now in a lot of my options I include a clause that upon payment of a certain amount I can extend the option date by so much time. and in one case I did that after I was lucky enough to sit at the table next to the wife of a guy that was desperate to buy that property. She was telling her friend that he was buying the properties on each side and was at that moment writing up a contract with the seller to buy his property when my option expired the next week.

To bad she didn't know what I looked like. My wife and I drove over after lunch and gave the seller the extension fee to extend my option for 1 year. Two days later a phone call from a guy willing to take the option off my hands for a few bucks profit and allow me to get my money back on that turkey. The way he presented it he was trying for sainthood. I let him know sainthood doesn't come cheap, my wife loved her new car.