Option Assignment Terms
- "The Company", "WE", "US", "OUR","Option Holder" means Delma Homes(Company registration number 09045757)
- "YOU" means the person or company who purchases a property through US.(Property Trader or Property Trading Company)
- "The Parties" means US and YOU.
- "Property" means any property situated in England, Wales or Scotland that WE have an Option Agreement signed with the owner.
- "Purchase Price" means the amount WE agree the sale at to YOU.
- "Seller /Owner" meansthe registered proprietorof the Property.
- "Release Sum / Option Fee" means the amount equal to the difference between the agreed amount YOU are paying for the Property (Purchase Price) and the price WE have agreed as abuying price(option) with the Owner.
- "Profit Share" means the amount WE agree to on a resale if WE decide to share the risk of the resale.
- "Introduction" meansUS presenting a Property to YOU.
- "Option" means an agreement that WE have with the Owneron thePropertythat is purchased by YOU from US.
- "Completion Date" means the date on which the transaction settles and ownership is transferred.
This agreement is effective as of the date above and will run until either party terminates the agreement. The relationship between US and YOU can be terminated once ongoing transactions have completed and no ReleaseSums / Profit Shares are outstanding from either party.
The parties hereby agree to the following terms:
- WE and YOU have agreed to an agreement in which WEassign our Option to purchase the Property to YOU.
- The Transfer of the Option from US to YOU will take place when the Memorandum of Sale is issued on the Property.
- This agreement and these terms may cover multiple Option to Purchase Transfers but do not constitute a partnership agreement.
- There will be a Release Sum for each transaction due to US.The Release Sum amounts will vary and will be negotiated upon a case by case basis.
- YOU acknowledge that WE hold an Option with a purchase price that is lower than the Purchase Price agreed with YOU. The difference between these amounts will come to US as the Release Sum.
- WE will provide you with details of any Property which WE think is a viable option for YOU to purchase. YOU are under no obligation to purchase the Propertybut by doing so YOU agree to pay the Release Sum dueto US on that purchase.
- Assigning OUR Option to YOU is OUR first preference.However in cases where WE are not sure of the market or Property end value,WE will consider a Profit Share and share the risk.
- For a Profit Share agreement WE will provide the Property and YOU will help dispose of it, advance a Profit Share on the purchase in some cases and agreed future profit on the resale.
- The Release Sums or Profit Share amounts will be agreed upfront and will vary from Property to Property. Once the Property is ready to complete,WE will invoice YOU for OURRelease Sum due. Once YOU exchange contracts for a purchase or resale, YOU acknowledge that WE will receive a Release Sum for the Option or any Profit Share payable to US.WE will accept payments from the conveyancer acting on your behalf or directly from YOU.
- The Release Sum / Profit Sharemust be paid in full within 7 days of the invoice.
- YOU agree to complete the purchases in a timely manner and to the Seller's needs as outlined in the original introduction by US the Option Holder.
- TheParties agree to act in a professional manner, respect each other's company stance and not cause any harm to company reputations.
- The Parties agree to keep anyshared company information strictly confidential unless the other party consents to the information being shared.
- TheParties agree to comply fully to GDPR regulations. WE are the Data Controller and YOU are the Data Processor. Each party will bear their own liability in respect of any taxation whichmay become payable as a result of them entering into this agreement.
- This agreement must not be assigned from one party to another without prior consent from the other party in writing.
- YOU can dispose of the Propertyby any method acceptable to YOU after YOU have completed.However the Release Sum agreed at the outset must be maintained.YOU must not market the Property for sale prior to completion without OUR prior consent as the Option Holder.
- YOU must not contact the Owner without OURprior consent.
- If for any reason the purchase does not complete,WE will not be liable for any costs incurred by YOUand vice versa.
- WE will do our utmost to ensure all the Property information is as accurate as possible and does not mislead YOUin any way. As WE are the Option Holder,WE are relying upon information provided by the Owner. Any information provided to YOUrelating to the Property is for guidance only. YOUshall satisfy yourself regardingthe information provided before YOUcommit to a purchase.
- The Parties will use theirbest endeavours to keep confidential anyinformation of a confidential nature relating to the other party which maycome into their possession or of which they become aware.
- TheParties agree to conform with GDPR.
- This agreement constitutes the agreement in its entirety unless subsequently varied in writing and agreed to by The Parties.