The Option To Purchase Agreement is a crucial document in Hong Kong property transactions where parties wish to secure future purchase rights while maintaining flexibility. It is commonly used in situations where potential buyers need time to arrange financing, conduct due diligence, or require certainty about their right to purchase without immediate commitment to the full transaction. The document provides security for both the property owner and the potential buyer, setting out clear terms for the option fee, purchase price, and exercise mechanism. Under Hong Kong law, such agreements must comply with specific requirements under the Conveyancing and Property Ordinance and related legislation, including proper execution and stamp duty obligations. The agreement is particularly valuable in competitive property markets or complex commercial transactions where securing purchase rights is essential.

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

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into an option arrangement

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Purchase Price', 'Property', 'Completion Date', etc.

4. Grant of Option: Core clause granting the exclusive right to purchase the property within the specified option period

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

6. Exercise of Option: Procedure for exercising the option, including notice requirements and formalities

7. Purchase Price: Agreed purchase price for the property and payment terms if option is exercised

8. Property Condition: Current state of the property and any warranties regarding its condition

9. Completion: Timeline and procedures for completing the sale if option is exercised

10. Default and Termination: Consequences of breach and circumstances for termination

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction

12. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments