Nebraska Option to Purchase
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FAQ
Typically, the seller grants the buyer an option to purchase the property based on the terms and conditions in the Option to Purchase, in return of a sum of money from the buyer called the Option Fee. The Option Fee is typically 1% of the sale price of the property, but is negotiable between parties.
A lease-option is a contract in which a landlord and tenant agree that, at the end of a specified period, the renter can buy the property. The tenant pays an up-front option fee and an additional amount each month that goes toward the eventual down payment.
An option to purchase agreement therefore gives the buyer rights over the land, and will also bind a future owner of the land too.Pre-emption rights in regard to registered land take effect at the time of their creation however, and can therefore be binding on subsequent owners.
Broadly, a real estate option is a specially designed contract provision between a buyer and a seller. The seller offers the buyer the option to buy a property by a specified period of time at a fixed price. The buyer purchases the option to buy or not buy the property by the end of the holding period.
How long does an option last? An option typically lasts 24 months but the timeframe to exercise is completely negotiable at the agreement stage.