The Option To Purchase Agreement is a crucial document in Philippine real estate transactions, providing a structured framework for securing the right to purchase property while conducting necessary due diligence. This agreement is commonly used when potential buyers need time to arrange financing, conduct property investigations, or obtain development approvals before committing to a purchase. The document must comply with Philippine civil law, real estate regulations, and tax requirements, including proper notarization and registration procedures. It protects both parties by clearly defining the option period, consideration, purchase terms, and exercise mechanisms. The agreement is particularly valuable in commercial real estate transactions, property development projects, and situations where phased acquisitions are contemplated. It includes specific provisions required under Philippine law and typically addresses local requirements for property transfers and registration.

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

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

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Option Fee', 'Purchase Price', and 'Property'

4. Property Details: Comprehensive description of the property, including legal description, title details, and current encumbrances

5. Option Grant: Express grant of the option, specifying the exclusive right to purchase the property

6. Option Period: Duration of the option, including start and end dates, and any conditions for extension

7. Option Fee: Amount of option fee, payment terms, and whether it will be credited toward the purchase price

8. Exercise of Option: Process and requirements for exercising the option, including notice requirements

9. Purchase Terms: Terms that will apply if the option is exercised, including purchase price, payment terms, and closing requirements

10. Title and Due Diligence: Provisions regarding title investigation, surveys, and property inspection rights

11. Representations and Warranties: Standard representations about property ownership, authority to sell, and property condition

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

13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

14. Notices: Process for giving formal notices under the agreement

15. Execution: Signature blocks and notarial requirements