Option To Purchase Real Estate

OPTION TO PURCHASE REAL ESTATE THIS AGREEMENT, made this ________ day of ______________, 20____, BETWEEN ____________________________________________, hereinafter called “Optionor”, AND ____________________________________________, hereinafter called “Optionee”, IN CONSIDERATION (which will be applied toward purchase price) of the sum of: $ ___________________ paid by Optionee to Optionor (the receipt whereof is hereby acknowledge the Optionor) the Optionor gives to the Optionee the exclusive option, right, and privilege of purchasing certain real estate located in Calgary, Alberta, Canada described as: Address: Legal Description: Total Purchase Price: This Option to Purchase Real Estate agreement is not in any form or related to or forms any part or changes to the original rental or lease (which is governed under the Residential Tenancies Act of Alberta). This separate agreement is called Option to Purchase Real Estate. This Option to Purchase is not, shall not be construed as, or interpreted as any form of MORTGAGE. It is hereby declared that it is not the intent of the parties to create a loan of any nature or to create a mortgage of any kind. THIS OPTION IS SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: (1) This option is not assignable by the Optionee unless Optionor agrees separately and in writing. (2) There shall be additional option consideration of $ ___________ per month given to Optionee. The monthly option consideration shall be credited toward the down payment/purchase price of the property. The credit will only apply to months when the rent amount and any outstanding fees owed is paid on or before the due date and in full. (3) The Optionor grants Optionee the right to exercise this option for a period commencing on ______________ ______,20__ and terminating at midnight, _____________, 20___ (60 days prior to end of the lease term). If not exercised, this option shall expire midnight _______________, 20 ___ (60 days prior to end of the lease term) and the Optionor shall be released from all obligations hereunder, legal or equitable. The obligation shall cease and the consideration here above receipted for the Optionor, shall be retained by Optionor. (4) If the Optionee elects to exercise this option the sale shall take place at Noon at _________________________, Calgary, Alberta and the Offer to Purchase as issued by AREA (Alberta Real Estate Association) at that time to be used as a guide for normal adjustments. (5) Notice of election to Purchase shall be given by Optionee in writing, and by registered mail, address to the Optionor, at: ___________________________________________________________________________________ .

(6) All provisions of the Lease Agreement between Optionor and Optionee pertaining to the aforementioned property shall be performed by Optionee or this option may be withdrawn by Optionor and Option considerations will be forfeited by Optionee. (7) OPTIONEE agrees to accept subject property in current “as is” condition. OPTIONEE agrees to make all repairs major and minor to the above named property. Should OPTIONOR be required to make repairs of any kind whatsoever to the property, the cost of such repairs shall be added directly to the purchase price. (8) OPTIONEE agrees to pay for any and all additional assessments incurred during occupancy and prior to ownership (example but not limited to: water, sewer, sidewalks, or road paving). (9) The option consideration is for the sole purpose of granting the OPTIONEE the exclusive right to purchase the subject property at the stated price and terms. In the event that the OPTIONEE does not meet the terms and conditions contained in this agreement all option consideration paid will be forfeited by OPTIONEE and will be kept by OPTIONOR. (10) This option will be terminated and all option consideration forfeited, if payment required on option agreement or any payment required on rental agreement is late for more than ten days past the due date. (11)

This option to purchase shall apply to and bind the heirs, executors, and administrators.

(12) If option money is forfeited by Optionee, for any reason, then the rental agreement will automatically revert to a month to month agreement, so that Optionor may sell or re-lease the property. (13) Optionee agrees that they will not or cause to record anything against the title, of said property, prior to closing and owning this property. (14) Optionee understands that Optionor does not hold title (own) this property, but is transferring their interest in the property. If Optionor can’t transfer title due to something out of their control (ie. Owner refuses to close or can’t transfer clear title). Optionor will reimburse Optionee that entire option consideration plus an additional $ 500.00 for their inconvenience, as full and complete liquidated damages of Optionor not being able to close on the property. (15) Optionor has advised the Optionee to seek the advice of a mortgage lender and attorney prior to signing this document. (16)

Time is of the essence in this agreement.

IN WITNESS WHEREOF, the parties have executed this agreement on the date first above written. Optionor : _______________________ Print Name(s):

Optionee: _______________________ Print Name(s): _______________________ Print Name(s):

Witness:

Witness:

_______________________ Print Name:

_______________________ Print Name: