Yes, you can assign your option agreement to another as long as
1) the contract is assignable (no Non-assignment clauses)
2) The seller/optionor allows it
On two, if you wrote the contract with a clause that says something to the effect of "buyer/optionee can assign his/her interest in this contract" or you put "and/or assigns" after your name, then the seller has already given their okay (though it is still a good idea to inform them before doing it). Otherwise, you will have to get their written permission to assign.
i am working with a non-exclusive option document. My question is this: once both parties have signed the option, when i go to exercise this option (it will be by mail, as per the option agreement), do i then draft up a purchase agreement with the aforementioned sales price in the option?
OR, if i am assigning this option to a new investor, would they then draft up the purchase agreement with the seller and go to closing?
Just so we're clear, a Non-exclusive option means that the seller is obligated to sell to you ONLY if they don't find another buyer before you exercise your option.
As far as your question, if you (or the buyer of your option) decide to exercise your option, you'll usually mail a formal notice to exercise along with a purchase contract.
What if i exercise the option and then just assign the contract to the interested buyer? or do you think that most buyers will be turned off by the non-exclusionary nature of the option?
Look, a non-exclusive option doesn't mean anything, really. The person you would assign the option to can go directly to the seller and get the same deal without you.
Does your option allow for some time period between its exercise and the closing? how long? Is this enough time to put together an assignment deal?
Why would you let the person buying the option from you know who the seller was until they paid you first?
I would have the option purchaser write me a check to be placed in escrow until the deal closes with the seller. Then I'd put them in touch with the seller. That way everyone is protected.
Yes, you can assign your option agreement to another as long as
1) the contract is assignable (no Non-assignment clauses)
2) The seller/optionor allows it
On two, if you wrote the contract with a clause that says something to the effect of "buyer/optionee can assign his/her interest in this contract" or you put "and/or assigns" after your name, then the seller has already given their okay (though it is still a good idea to inform them before doing it). Otherwise, you will have to get their written permission to assign.
Roger
i am working with a non-exclusive option document. My question is this: once both parties have signed the option, when i go to exercise this option (it will be by mail, as per the option agreement), do i then draft up a purchase agreement with the aforementioned sales price in the option?
OR, if i am assigning this option to a new investor, would they then draft up the purchase agreement with the seller and go to closing?
Just so we're clear, a Non-exclusive option means that the seller is obligated to sell to you ONLY if they don't find another buyer before you exercise your option.
As far as your question, if you (or the buyer of your option) decide to exercise your option, you'll usually mail a formal notice to exercise along with a purchase contract.
A non-exclusive option may be hard to sell.
Roger
What if i exercise the option and then just assign the contract to the interested buyer? or do you think that most buyers will be turned off by the non-exclusionary nature of the option?
Look, a non-exclusive option doesn't mean anything, really. The person you would assign the option to can go directly to the seller and get the same deal without you.
Does your option allow for some time period between its exercise and the closing? how long? Is this enough time to put together an assignment deal?
Why would you let the person buying the option from you know who the seller was until they paid you first?
I would have the option purchaser write me a check to be placed in escrow until the deal closes with the seller. Then I'd put them in touch with the seller. That way everyone is protected.