Put and Call Option Agreement
A Put and Call Deed or Agreement is an arrangement between two parties to enter into an agreement for the sale of land by a pre-determined date. Depending on the agreement, either party has the right to either 'call' the other party to sell the property, or 'put' the other party to purchase the property. That 'put' or 'called' party is then obliged to sell or purchase the property.
The terms for exercising the put or call option vary depending on agreement Put and Call Option Agreements are commonly used in larger style developments or as part of a lease agreement to evidence the intention of the parties to enter into a binding contract but only on the completion of other conditions relevant to the parties. Consideration is usually paid by way of call option fee by the grantee (potential purchaser), for the privilege of holding the exclusive ability to purchase the property. The grantor (potential vendor) may also pay a put option fee.
Tailored Conveyancing Solicitors have experience in negotiating agreements and providing advice for purchasers and vendors in Put and Call Option Agreements. For advice regarding your Put and Call Option Agreement, exercising an option pursuant to a Put and Call Option Agreement, please contact our office.