Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
I am glad to say that the wording to the Option Agreement is pretty standard, and what I would expect to see, with no unusual or onerous clauses as far as your friend is concerned.
The Agreement basically allows the Buyer 90 days from the date it is signed, to decide whether or not to buy the property- during this time they will do a Valuation, their Solicitor will carry out the normal searches and check the legal title.
Reference to the Fifth Edition is that all Sales are carried out in accordance with the Law Society's Conditions of Sale (Fifth Edition) and is quoted in all Sale Contracts, and there is nothing to be worried about this.
Reference to the "Restricition" is purely to protect the Buyer so during the 90 day period, your friend is basically prevented selling the property to a third party, in that the Restriction would prevent her from doing this, which is fair enough.
I confirm that the Option Payment will be paid by the Buyer upon signing the Agreement and the agreed Purchase price (obviously your friend will need to agree this figure with the Buyer) will be paid upon completion of the Sale if the Option is exercised. Hence, your friend does not have to give up the property until this Purchase price has been paid, which is standard.
The one thing your friend will need to clarify is the paragraph beginning-
"Vacant possession of the Property will be given on completion".
This paragraph means the property will be free of any Tenant and as these Agreements relate to her Buy to Let properties, I am guessing there are Tenants in each property, and if so, this clause will need to be amended to say the property "is sold subject to a Tenancy dated xx between the Seller and Mr Tenant".
This paragraph also goes on to allow for the proeprty to be rented back to your friend, the Seller. I am not sure if this is relevant- I am guessing your friend does not intend to occupy any of the properties after they have been sold, but if she is, please note the wording means the Buyer is only under a duty to grant her a 6 month Tenancy, and could legally serve Notice after 4 months and ask your friend to vacate at the end of the 6 month period.
I hope this assists you and sets out the legal position.
Overall, I am quite content with it, subject to what I have said but I would also recommend that your friend instructs a Solicitor before signing it!
Thank you for your very quick and easy to read/understand reply regarding The Agreement. On that basis, I have left you the excellent standard for the rating.
I will be speaking later with my friend and will pass your reply onto her. If we have any further questions, I will contact you again.
Please feel free to get back in touch if need be.