Real Estate Option To Purchase Agreement Template for Hong Kong

The Real Estate Option to Purchase Agreement is a crucial document in Hong Kong's property market, providing a structured framework for property acquisition negotiations. It is commonly used when a potential buyer needs time to arrange financing, conduct due diligence, or satisfy other conditions before committing to a purchase, while ensuring the property owner cannot sell to another party during the option period. The agreement must comply with Hong Kong's legal requirements, including the Conveyancing and Property Ordinance and Stamp Duty Ordinance. It typically includes detailed property information, option terms, purchase price, exercise procedures, and completion requirements. This document is particularly valuable in both commercial and residential property transactions where parties need to secure their interests while finalizing transaction details.

1. Parties: Identification of the Option Grantor (property owner) and Option Holder (potential purchaser), including full legal names and addresses

2. Background: Context of the agreement, including brief property description and parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including 'Option Period', 'Purchase Price', 'Property', 'Completion Date'

4. Grant of Option: Express grant of the option to purchase, specifying the exclusive nature and duration of the option

5. Option Fee: Amount of option fee, payment terms, and whether it's refundable or forms part of the purchase price

6. Exercise of Option: Procedure for exercising the option, including notice requirements and time constraints

7. Purchase Price: Agreed purchase price for the property and payment terms if option is exercised

8. Property Details: Detailed description of the property, including address, lot number, and registered details

9. Conditions of Sale: Standard conditions that will apply to the sale if the option is exercised

10. Title and Capacity: Grantor's warranties regarding ownership and authority to sell

11. Completion: Completion procedures, timing, and obligations of both parties

12. Termination: Circumstances under which the option agreement may be terminated

13. Governing Law: Specification of Hong Kong law as governing law and jurisdiction

14. Entire Agreement: Standard entire agreement clause confirming this document represents the complete agreement