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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10779
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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/madam, Please could a conveyance solicitor look

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Dear sir/madam,
Please could a conveyance solicitor look at the following OPTION TO BUY PROPERTY AGREEMENT. my friend has been asked to sign one for each freehold buy to let property she wishes to sell. Her neighbours son apparantly has properties and manages properties and has organised this. Apparantly he is not charging my friend but will recieve a fee of £600 from Property Moose. My friend asked him for clarification of it all but unfortunately it was neither a full, complete or an acceptable explanation. A lot of it was not even addressed. The agreement is printed black and white on standard paper.
We are worried that my friend would be giving permission to legally sign over her property to Property Moose or another company before or without receiving payment ie. she would lose the properties and be left with a debt of £400k in mortgages. I rang Land Registry for clarification and was told they could not comment but it was made clear to me 3 times by them to contact a solicitor before proceeding. And we don't know what the 'fifth edition' is either.
We do not really understand much if any of the document but something does not feel right, so any explanations would be much appreciated.
also we are looking to see if this is a standard agreement or if there is anything in it that should cause a concern eg.
1) Upon completion of the Option, the Seller authorises the Buyer to register a restriction on the title(s) to the Property with HM Land Registry.
2)The standard Conditions of sale (Fifth Edition) shall apply and are incorporated herein save that this Option Agreement is assignable.
This Agreement is made on the ____ day of ________________ 2015
Property Moose Developments Limited (the “Buyer”): and
________________________________ (the “Seller”).
The Seller now owns all that [Freehold/Leasehold] Property situate and known as
more particularly described in the Property Register at HM Land Registry under Title Number ___________ (the “Property”).
In consideration for this option, the sum of £__, (the “Option Payment”) receipt of which is hereby acknowledged by the Seller upon execution of this agreement, 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: £[INSERT]
The Option Payment will be credited against the purchase price of the Property if the Option is exercised by the Buyer.
The Option Period will remain in effect for 90 days from the date of this Agreement (“the Option Period”). The Option shall be exercised by the service of written Notice by the Buyer on the Seller at any time within the Option Period.
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.
The standard Conditions of sale (Fifth Edition) shall apply and are incorporated herein save that this Option Agreement is assignable.
Vacant possession of the Property will be given on completion. In the event that the Seller has agreed to rent back the property, a signed minimum 6-month Assured Shorthold Tenancy agreement will be required on completion. This agreement is renewable every subsequent 6 months subject to rental reviews and satisfactory tenancy conduct.
The Seller shall transfer with Full Title Guarantee and free from all encumbrances (including but not limited to any charges or other security registered against the title(s) for the property with HM Land Registry).
The Seller confirms that they are the registered owner of the Property and is able to sell the Property free from encumbrances.
The Seller agrees not to apply for any mortgages or secured loans on the Property at any time during the Option Period.
If the Option is not exercised within the Option Period, the Option herein granted shall be null and void and the Seller will retain the Option Payment.
No modification of this agreement will be effective unless it is in writing and is signed by both the Buyer and Seller. This agreement binds and benefits both the Buyer and Seller and any successors or personal representatives. This document, including any attachments, is the entire agreement between the Buyer and Seller and shall be governed by English Law.
Upon completion of the Option, the Seller authorises the Buyer to register a restriction on the title(s) to the Property with HM Land Registry.
(Then its signatures and witness signatures i have not included to save space.)
Thank you for looking at this for us. Any clarification, advice or explanation will be gratefully recieved.
Kind regards,

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!

Kind Regards


Aston Lawyer and other Law Specialists are ready to help you
Customer: replied 3 years ago.

Dear Al,

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.

Kind regards,


Hi Jennie,

Many thanks.

Please feel free to get back in touch if need be.

Kind Regards