“Taking an Option” on a property can be contracted in various forms as there are a lot of variables that can transpire over the time period between your “taking an Option” and your exercising the Option that needs to be considered.
As a buyer, the longer the option period, the more risk you are taking. That said, your questions below are typical questions in a real estate purchase agreement, regardless of the fact that you are contemplating an Option contract.
Let me try to help you.
Owner Request #1:
1: Buyer shall obtain, at Buyer’s expense, a current title commitment providing for an extended coverage owner’s title insurance policy in an amount equal to the Purchase Price.
Typically, in the Denver market, a seller pays for the title insurance policy, so this paragraph asks you to pay. Without knowing the proposed purchase price, I cannot tell what cost you should expect.
Owner Request #2:
2: Buyer will indemnify Seller for any damage, loss, and liability which Seller may suffer as a result of Buyer’s acts with respect to such inspections, surveys, tests, and studies of the Property.
This paragraph says if you drill holes in the ground for testing or remove siding to look at the structure, or for any reason “disturb” the property, you have to put it back in good shape if you don’t close. No need to be too concerned here.
