Option to Buy Agreement

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{{company_address}}

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OPTION TO BUY AGREEMENT

This Option to Buy Agreement ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}}, ('Effective Date') between:

**{{seller_name}}** (Registration Number: {{seller_registration_number}}), a company duly incorporated under the laws of {{seller_jurisdiction}}, with its principal place of business at {{seller_address}} (hereinafter referred to as the 'Grantor' or 'Seller');

AND

**{{buyer_name}}** (Registration Number: {{buyer_registration_number}}), a company duly incorporated under the laws of {{buyer_jurisdiction}}, with its principal place of business at {{buyer_address}} (hereinafter referred to as the 'Grantee' or 'Buyer').

**WHEREAS**, the Grantor is the sole and legal owner of the asset/property described herein; and

**WHEREAS**, the Grantee desires to obtain an option to purchase said asset/property from the Grantor under the terms and conditions hereinafter set forth.

1. GRANT OF OPTION

The Grantor hereby grants to the Grantee an exclusive option ('Option') to purchase the following asset/property (hereinafter referred to as the 'Subject Matter'):

**Description of Subject Matter:** {{subject_matter_description}}

**Location/Address (if applicable):** {{subject_matter_location}}

**Unique Identifiers (e.g., VIN, Serial Number, Title Deed Number):** {{subject_matter_identifiers}}

2. OPTION PERIOD

This Option shall be valid and exercisable for a period commencing on the Effective Date and expiring at {{time}} on {{option_expiry_date}} ('Option Period'). The Grantee must exercise the Option within this Option Period for it to be valid.

3. OPTION CONSIDERATION

In consideration for the Option granted herein, the Grantee shall pay to the Grantor a non-refundable option fee of {{currency}} {{option_fee_amount}} ({{option_fee_amount_words}}) upon the signing of this Agreement. This Option Fee shall not be credited towards the purchase price if the Option is exercised, unless otherwise agreed in writing by both parties.

4. PURCHASE PRICE

If the Option is exercised, the purchase price for the Subject Matter shall be {{currency}} {{purchase_price_amount}} ({{purchase_price_amount_words}}), which includes/excludes {{VAT_status}} VAT. The payment terms and schedule for the Purchase Price shall be as follows: {{payment_terms}}.

5. EXERCISE OF OPTION

The Grantee may exercise this Option by delivering written notice to the Grantor at {{grantor_notice_address}} no later than the Option Expiry Date. The notice must clearly state the Grantee's intent to exercise the Option and proceed with the purchase of the Subject Matter.

6. CLOSING AND TRANSFER

Upon the exercise of this Option, the parties shall execute a definitive Sale Agreement (or similar transfer document) within {{days_to_closing}} days from the date of the Option exercise notice. The closing of the sale and transfer of ownership of the Subject Matter shall take place on or before {{closing_date}} at {{closing_location}}.

7. WARRANTIES AND REPRESENTATIONS

The Grantor warrants and represents that: (i) it has full legal right, power, and authority to enter into this Agreement and to sell the Subject Matter; (ii) the Subject Matter is free from all liens, encumbrances, and adverse claims, except as explicitly disclosed in writing to the Grantee; (iii) {{other_seller_warranties}}.

The Grantee acknowledges that, save as expressly provided herein, the purchase of the Subject Matter is 'voetstoots' (as is/with all its imperfections), and the Grantor makes no other warranties or representations regarding the condition or suitability of the Subject Matter.

8. GOVERNING LAW AND DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_jurisdiction}}. Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in accordance with the rules of the {{arbitration_institution}} for the time being in force, which rules are deemed to be incorporated by reference into this clause. The seat of the arbitration shall be {{arbitration_city}}, and the language of the arbitration shall be English.

9. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Option to Buy Agreement on the Effective Date first written above.

**GRANTOR/SELLER:**

_____________________________

Name: {{seller_signatory_name}}

Capacity: {{seller_signatory_capacity}}

Date: {{seller_signature_date}}

**GRANTEE/BUYER:**

_____________________________

Name: {{buyer_signatory_name}}

Capacity: {{buyer_signatory_capacity}}

Date: {{buyer_signature_date}}

**WITNESSES (for each party, if applicable):**

1. ___________________________

Name: {{witness1_name}}

Date: {{witness1_date}}

2. ___________________________

Name: {{witness2_name}}

Date: {{witness2_date}}