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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10458
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I am selling my home with quick buy company. They asked me

Resolved Question:

I am selling my home with quick buy company. They asked me to sign an agreement with 'option payment' £1 and although I asked what it meant I was not happy with the explanation as it seemed pointless. I signed as I was unwell at the time and as I need to sell quickly due to ill health I signed. I intended to use my own local solicitor but they are paying these fees and insisted on their solicitor. I had a letter from the solicitor and in the first paragraph it isn't clear to me who gets the 70k minus the £1 and who gets the £1. It could be that I am being paranoid but need an expert eye to confirm all is OK. I tried CAB but they didn't have legal help and I do not have any money except my home. I cannot find any way of attaching the documents so I hope I can copy and paste them here. I am hoping to sell in a month so time is short. Please can you advise.
Option To Buy Property Agreement
WHEREAS:
The seller now owns***** SA18 4NS (The Property).
NOW IT IS HEREBY AGREED SUBJECT TO VALUATION as follows:
1. In consideration of the sum of £1, (the 'Option Payment') receipt of which is
hereby acknowledged by the seller upon execution of this document, the
Seller grants to the Buyer the exclusive option to buy the property for the
following price and on the following terms (the 'option'):
Purchase price: £70,000
2. The option payment will be credited against the purchase price of the
property If the Option is exercised by the buyer.
3. If, after signing this agreement. the Seller fails to complete the sale of the
Property to the Buyer, the seller will reimburse the buyer with all the costs that
the buyer has incurred including the option payment.
4. The Option period will be for 26 weeks from the date of the agreement
("the Option Period"). The Option shall be exercised by the service of the
written notice by the buyer on the seller at any time within the Option period.
5. i. Upon the service of the written Notice from the Buyer to the Seller
exercising the Option this Agreement shall constitute a Contract for the Sale
and Purchase of the Property with the terms and conditions hereunder
provided.
ii The standard Conditions of sale (Fourth Edition) shall apply and are
Incorporated herein save that this option Agreement is assignable.
6. If after the exercise of the Option the seller shall have failed or refused
to execute an agreement for the sale of the Property or to execute the
Transfer or an other deed or document which is required to give effect to this
agreement then the Option Holder is hereby irrevocably appointed Attorney to
execute the same on behalf of the Owner. This power of attorney is given to
secure a proprietary interest of the Option Holder and is therefore irrevocable
for as long as that interest subsists.
7. If the property seller has failed or refused to execute an agreement for
the sale of the Property or to execute the Transfer or any other deed or
document which is required to give effect to this agreement then they shall be
liable for all direct costs incurred by the buyer(s) in relation to the property
purchase.
8. This agreement IS subject to contact and subject to survey
Solicitor letter
Dear Mrs Dawkins
Re:***** Carmarthen SA18 3NS
Thank you for instructing me in connection with your proposed sale.
f
I understand you have entered into an Option Agreement with Chabu Limited for the sum
of £70,000.00 and this is the sum that will be due to you on completion of the sale. Could
you please provide me with a copy of the Option Agreement for my records. I understand ~
that the Option Agreement requires the difference between the option price and the sale
price to be paid to Chabu limited. Please confirm your instructions for the completion
monies to be dealt with in this way.
I am pleased to confirm the details of the costs and disbursements as follows:-
Our Fee
VAT thereon
Office Copy Entries
Telegraphic Transfer
£600.00
£120.00
£ 8.00
£ 36.00 each (if required)
I am instructed that Chabu limited have agreed to be responsible for my legal fees up to
and including the sum of £700.00 if the matter proceeds to completion. However, any fees
incurred over £700.00 will be your responsibility.
I hope the above is helpful but if you have any further queries, please do not hesitate to
contact me.
Y~~
Ceri Wilkinson
Licensed Conveyancer
Submitted: 2 years ago.
Category: Law
Expert:  Aston Lawyer replied 2 years ago.

Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

The option agreement is basically stating that you will agree to sell the property for £70,000 and provided your Buyer's Survey does not show any problems and there are no issues with the legal title to the property (clause 8), you are legally bound to sell the property to the Buyer and no one else, provided your Buyer completes the Sale within 26 weeks.

Your Buyer will pay you the £1 and upon completion of the Sale they will then pay £69,999.

I hope this clarifies matters.

I will be going off line in a few minutes but will be back around 11.30am if you need any further clarification.

Kind regards

Al

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