How Option Agreement protects buyer?
The affidavit is a voluntary declaration made by a person under oath administered by an authorized person under the law. It is a declaration of fact given in writing voluntarily, which is not cross-examined. It is based on the belief that what the affiant says is true either due to personal knowledge of the affiant or stated information.If an option was not signed before a notary, you can sign an affidavit called memorandum of Option and file it in the location of the property. It does not provide lien over property but only a cloud on the title of the property. A cloud on the title enables the person with the option to execute the option before the prescribed date agreed in the Memorandum.
Memorandum of Option is an understanding entered between the parties under which an Option is given as Contract right and not as an interest in the property. An Option can be beneficial to both the parties. It is normally carried out for Real Estate deals where memorandum of Option is executed where the property is located.The Option is given to the potential buyer, called as Optionee, who pays a fixed amount for the purchase of Option. Terms of Option agreement may vary, but it should describe the subject property and purchase price clearly.
The Potential buyer may be given time under the option, and he may choose to let the option lapse as he is not obliged to purchase the property. Memorandum of Option doesn’t provide any interest but provides protection to the potential buyer by way of providing a cloud on the title.
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