The Option To Buy Land Agreement is a strategic legal instrument used in Australian property transactions where a potential purchaser seeks to secure the right to buy a property without immediate commitment to the purchase. This document is particularly valuable in situations requiring due diligence, development approval, or financing arrangements before committing to a purchase. It provides protection for both the property owner and the potential purchaser by clearly defining the terms of the option, including the purchase price, timeframe, and conditions for exercise. The agreement must comply with Australian property law requirements, including state-specific regulations for property transfers and contract formation. It serves as a preliminary step to a full property purchase, allowing the option holder to evaluate the opportunity while providing the property owner with consideration for keeping the property available during the option period.

1. Parties: Identification of the Option Grantor (landowner) and Option Holder (potential purchaser), including full legal names and addresses

2. Background: Context of the agreement, including brief description of the property and parties' intentions

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Option Fee', 'Purchase Price', 'Exercise Notice', etc.

4. Grant of Option: Clear statement granting the exclusive option to purchase the property, including the option period duration

5. Option Fee: Details of the option fee amount, payment terms, and whether it's refundable or applied to the purchase price

6. Exercise of Option: Process and requirements for exercising the option, including form of notice and time requirements

7. Purchase Price: Clearly stated purchase price or mechanism for determining it, including any adjustments

8. Property Details: Full legal description of the property, including title details and any inclusions/exclusions

9. Pre-Exercise Obligations: Parties' rights and obligations during the option period, including property access and maintenance

10. Contract Formation: Terms specifying how the sale contract comes into effect upon exercise of the option

11. Default and Termination: Consequences of default by either party and circumstances for termination

12. GST: GST treatment of the option fee and purchase price

13. Notices: Process for giving and receiving formal notices under the agreement

14. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and variation