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Option Contract (Real Estate)
I need a Real Estate Option Contract for a commercial property development project in Copenhagen, where my company requires a 12-month option period starting March 2025, with the right to extend for an additional 6 months if planning permission isn't obtained within the initial period.
1. Parties: Identification and details of the option grantor (property owner) and option holder
2. Background: Context of the agreement and general intention of the parties
3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Option Price, and Exercise Notice
4. Property Description: Detailed description of the real estate subject to the option, including address, land registry details, and cadastral number
5. Grant of Option: Core terms of the option grant, whether it's a call or put option, and exclusivity provisions
6. Option Period: Duration of the option, including start date, end date, and any extension provisions
7. Option Price and Premium: Amount payable for the option itself and the agreed purchase price if the option is exercised
8. Exercise of Option: Procedure for exercising the option, including notice requirements and timing
9. Completion Obligations: Requirements and procedures for completing the property purchase after option exercise
10. Property Access and Information: Rights of the option holder to access and inspect the property during the option period
11. Representations and Warranties: Statements and guarantees about the property and parties' authority
12. Registration: Provisions regarding registration of the option in the Land Registry
13. Assignment: Rules regarding transfer of option rights to third parties
14. Termination: Circumstances under which the agreement can be terminated
15. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes
16. Notices: Communication procedures between parties
17. Execution: Signature requirements and execution formalities
1. Development Conditions: Used when the option is contingent on obtaining specific building permits or zoning changes
2. Environmental Provisions: Required when environmental investigations or remediation are relevant to the property
3. Financing Conditions: Include when the option exercise is subject to obtaining specific financing
4. Due Diligence: Detailed provisions for property investigation when extensive due diligence is required
5. Property Management: Include when specific requirements exist for property maintenance during the option period
6. Third Party Rights: Required when there are existing tenants or other third-party rights affecting the property
7. Tax Provisions: Include detailed tax arrangements when complex tax implications exist
8. Force Majeure: Include specific force majeure provisions when required by the circumstances
1. Property Details: Detailed property description, including maps, plans, and land registry excerpts
2. Option Premium Calculation: Detailed breakdown of option premium calculation if complex
3. Form of Exercise Notice: Template for the formal option exercise notice
4. Due Diligence Documents: List of required due diligence documents and their status
5. Existing Encumbrances: Details of any existing mortgages, easements, or other encumbrances
6. Property Condition Report: Current condition assessment of the property
7. Required Permits: List of required permits and their status
8. Draft Purchase Agreement: Form of purchase agreement to be used upon option exercise
Authors
Real Estate Development
Commercial Property
Residential Property
Urban Development
Construction
Property Investment
Real Estate Finance
Public Sector Real Estate
Industrial Property
Retail Property
Legal
Real Estate
Property Development
Investment
Asset Management
Acquisitions
Finance
Commercial
Risk Management
Compliance
Real Estate Director
Property Development Manager
Legal Counsel
Investment Manager
Property Acquisition Manager
Real Estate Investment Analyst
Development Director
Asset Manager
Real Estate Portfolio Manager
Property Lawyer
Commercial Director
Land Acquisition Manager
Real Estate Finance Manager
Transaction Manager
Project Development Manager
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