Posted by BTI on May 18, 2007 at 23:23:08:
Don
Yes you don’t have to set a firm set price, say $100K.
But you do need to set a way to determine the price, say the average of two appraisals. Or the average sales price of a 3br, 2ba, 1500sq/ft property in zip code 12345 during the previous 90 days.
You really don’t have an option if there is no way to determine the price within the option when the option is given.
BTI
New Message - Old Subject re: Firm Option Price - Posted by DonDe
Posted by DonDe on May 18, 2007 at 11:26:36:
A month ago (April 12) I asked for information regarding “Does an Option Agreement have to have a firm purchase price?” (Thanks Max-VA and Billy for your replies.)
However, an article from Bill Bronchick’s site (Legalwiz . com)alludes to the fact that a firm purchase price is not required. The following is lifted from the article:
". The option price is generally set at a fixed price at the inception of the lease, although it does not have to be. "
With this in mind, it leads me to believe that a firm purchase price can be made (negotiated) at the time an offer is made and is not necessary in the agreement.
Bill (or anyone else that has had experience with this), please clarify.
Thank you.
Don