An assignment of option takes place when a person transfers his or her rights or property to another person or business. It is a legal document that is received by an option writer saying that the option sold has been exercised by the purchaser of the option.
The main purpose of assignment of option to purchase is to transfer and assign interest as tenant in and to the option. It allows the assignor and assignee to acknowledge and agree on certain set of terms including that no officer, director, equity owner, employee or representative of assignor or assignee will ever have any personal liability under the specific assignment.
Similar to many option contracts, the purchaser’s assignment of option contract generally provides the purchaser a right to buy but it is not an obligation for him or her to do so. However, the owner of the property or business signing the contract has a legal responsibility to sell the property under the provisions mentioned in the option contract. But if the owner of the property does not do so, he or she might face a lawsuit, enforcing to sell the property. Keeping this in view, the property owner should only sign option contract when he or she wants to sell their property and are abide by the terms and conditions of the contract.
We offer several free Assignment PDF forms to help prepare your own Assignment Notice to the concerned authorities.
The purchaser’s assignment of option contract allows the purchaser enough time to make investment safely, look into property development options and check tribulations or attract partners. The option contract allows the potential purchasers to use a small amount of money for a big gain. However, the purchaser of the property or business should be very careful that the option fee they pay to acquire an option contract is not too high. If a potential purchaser refuses to exercise an option contract, he or she mostly forfeits the whole option fee.
On the other hand, the option contract is quite beneficial for the property owner too as he or she receives the option fee from the potential purchaser of the property. A number of option contracts allow them to keep the option fee if the purchaser does not exercise their purchase options. In such cases, the property or business owner has full right to sell it to someone else, along with keeping the entire option fee. However, the drawback of option contract for the owners is that they lose the other transaction opportunities during the time the property or business is under option and they could have to forfeit a large profit.
Despite the disadvantages of the assignment of option for both property/business owner and potential purchaser, it is an important legal document when it comes to selling or buying the property or business.
Here is preview of a Free Sample Purchasers Assignment of Option Notice created as fillable PDF Form,
Here is download link for this Purchasers Assignment of Option Notice,