The Option To Purchase Contract serves as a crucial instrument in Pakistani property transactions, providing a structured framework for securing future property purchases while maintaining flexibility for both parties. This document is particularly valuable when buyers need time to arrange financing, conduct due diligence, or await specific conditions before committing to a purchase, or when sellers wish to secure a potential buyer while maintaining ownership rights during the option period. The agreement must comply with Pakistani legislation, including the Contract Act 1872, Transfer of Property Act 1882, and relevant stamp duty and registration requirements. It typically includes detailed property descriptions, pricing terms, option period duration, exercise mechanisms, and conditions precedent to purchase, making it essential for both commercial and residential property transactions in Pakistan.

1. Parties: Identifies and provides full details of the option grantor and option holder

2. Background: Explains the context of the agreement and the parties' intention to enter into an option arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Grant of Option: Explicitly states the grant of the option and its basic terms

5. Option Period: Specifies the duration for which the option remains valid and exercisable

6. Option Price: States the amount payable for the option itself (if any)

7. Purchase Price: Specifies the price at which the property can be purchased if the option is exercised

8. Exercise of Option: Details the process and requirements for exercising the option

9. Payment Terms: Outlines the payment structure and methods for both the option and purchase price

10. Property Details: Provides comprehensive description of the property subject to the option

11. Representations and Warranties: States the promises and guarantees made by both parties

12. Covenants: Details obligations of parties during the option period

13. Termination: Specifies circumstances under which the option agreement can be terminated

14. Governing Law: Confirms Pakistani law as governing law and relevant jurisdiction

15. Notices: Specifies how formal communications between parties should be made

16. Execution: Signature blocks and execution formalities