do you think this is a good example of a option to purchase contract?
OPTION TO PURCHASE REAL ESTATE
THIS OPTION TO PURCHASE (the “option”) is made and entered into this ______ day of _________ by and between Helen Arlene Karlen (the “Optionor”) and Phillip E. Mitchell and Janice Mitchell (the “Optionees”).
WITNESSETH:
WHEREAS, the Optionor is the owner of certain real property situated in Pewee Valley, Oldham County, Kentucky, more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “property”); and
WHEREAS, the Optionor desires to grant to Optionees desire to obtain from Optionor, an option to purchase the property;
NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Optionor and the Optionees hereby agree as follows:
(A) GRANT OF OPTION
Optionor, in consideration of $1000.00 (ONE THOUSAND DOLLARS), duly paid by the Optionees, agrees to sell and convey the property to the Optionees, their successors and assigns, upon notice as provided in Paragraph (E) herein, at any time between the date of Optionor’s death and 5:00 p.m., three years from the date of Optionor’s death.
(B) PURCHASE PRICE
If the Optionees elect to exercise their option to purchase the property, the purchase price shall be $126,000.00 (ONE HUNDRED TWENTY-SIX THOUSAND DOLLARS) with an interest rate of 7% (SEVEN PERCENT) accruing on the unpaid balance beginning on the date of Optionor’s death. This purchase price and interest is payable in full on the closing date of purchase (the “Closing”) equally to Jack Karlen and Charles E. Karlen Jr., with all sums paid pursuant to section (A) hereof to be credited against the purchase price.
(C) CONVEYANCE
Upon the Optionee’s notice, the Optionor shall execute, acknowledge, and deliver to Optionee, at closing, a good and sufficient general warrant deed conveying fee simple title in property and all buildings and improvements thereon, free and clear of all liens, encumbrances, and other defects in title. All costs and expense of curing any defects in the title shall be borne by the Optionor; any such costs and expenses, together with all moneys required for the satisfaction of taxes, liens, or encumbrances, may be subtracted from the purchase price and applied directly to the curing of such defects, if any, and to the satisfaction and release of such taxes, liens, and encumbrances. All taxes for the tax year of conveyance shall be prorated between the Optionor and the Optionees as of the date of closing. Closing shall be at a time and place designated by the Optionees within 30 (THIRTY) days after notice of exercise.
(D) DAMAGE TO PROPERTY
If the Optionees elect to exercise this option, and if between the date hereof and the date of closing, any damage occurs to the property or any of the buildings or improvements located thereon, which loss is covered by insurance, such insurance proceeds (and the right to pursue recovery thereof) shall inure to the benefit of the Optionees upon exercise of this option, and Optionor hereby assigns all such proceeds and rights to the Optionees (subject to exercise of this option) and agrees that if Optionor collects any damages or insurance proceeds, such sums so collected shall be considered as payment on the purchase price. Prior to the closing, the Optionees (or any agent of Optionees) shall have the right to enter upon the property at reasonable times for the purpose of making such inspections and investigations as the Optionees deem necessary.
(E) NOTICE OF EXERCISE
If the Optionees elect to exercise the option in accordance with the terms hereof, notice of such election shall be deemed sufficient if personally delivered or sent by registered or certified mail, return receipt requested, to the last known address of Optionor.
(F) RESTRICTION ON SALE
Optionor agrees not to sell or offer for sale the property during the term of this agreement, or any renewal of extension thereof.
(G) ASSIGNMENT
The Optionees may assign this agreement, and upon any assignment such assignee shall have all of the rights, remedies, and obligations as if it were the original Optionees hereunder. From an after any such assignment, the term “Optionees” shall refer to such Assignee.
(H) EXPENSES
Each party hereto shall bear any and all of its own expenses in connection with the negotiation, execution, or settlement of this agreement.
(I) ENTIRE AGREEMENT
This agreement contains the entire agreement between the parties hereto and no modification or amendment shall be binding upon any party unless made in writing and signed by each of the parties hereto.
(J) GOVERNING LAW
This agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth of Kentucky.
(K) RECORDING
The Optionees shall have the right, at their sole discretion, to record this option in the office of the Oldham County, Kentucky Court Clerk.
IN TESTIMONY WHEREOF, witness the signatures of Optionor and Optionees as of the date first above written.
HELEN ARLENE KARLEN
OPTIONOR
405 Maple Avenue
Pewee Valley, Kentucky 40056
Commonwealth of Kentucky County of Oldham
The foregoing instrument was acknowledged before me this _____ day of_____________ by Helen Arlene Karlen.
My commission expires ___________________.
PHILLIP E. MITCHELL
OPTIONEE
7305 Autumn Bent Way
Crestwood, Kentucky 40014
Commonwealth of Kentucky County of Oldham
The foregoing instrument was acknowledged before me this _____ day of_____________ by Phillip E. Mitchell.
My commission expires ___________________.
JANICE MITCHELL
OPTIONEE
7305 Autumn Bent Way
Crestwood, Kentucky 40014
Commonwealth of Kentucky County of Oldham
The foregoing instrument was acknowledged before me this _____ day of_____________ by Janice Mitchell.
My commission expires ___________________.
JACK KARLEN
116 Maple Avenue
Pewee Valley, Kentucky 40056
Commonwealth of Kentucky County of Oldham
The foregoing instrument was acknowledged before me this _____ day of_____________ by Jack Karlen.
My commission expires ___________________.
CHARLES E. KARLEN JR.
820 Rugby Place
Louisville, Kentucky 40222
Commonwealth of Kentucky County of Oldham