P30-Terms of Option

                        
Objective Form

30.1  The term of this option shall begin on the date hereof and
shall end at 11:59 p.m. _____________________, 19______.

30.2  The option granted herein may be exercised by Buyer's
delivery of notice thereof to Seller before the end of the option
period.  Notice shall be deemed to be delivered when placed in
the U.S. mails, postage prepaid, certified or registered mail
with return receipt requested, to Seller at the following
address:
          __________________________________________________
          __________________________________________________
          __________________________________________________

30.3  In the event that the option is not exercised in the manner
provided, this option shall be null and void and Seller shall be
entitled to keep and retain the option fee paid pursuant hereto.


In the event that the option is exercised the following terms and
conditions shall apply to the purchase of the property.  The
option fee set foYrth above shall (shall not) apply to the
purchase price.


Comment
    The objective form reflects a "pure" option in the sense that
all sums paid for the option fee will not be returned if the
Buyer does not exercise the option.  An option, in a strict
sense, is the right to buy at a predetermined price.  That right
is given for a consideration.  If it is returned to the Buyer
when he fails to exercise the option, it is really just a
refundable deposit.  Many of the agreements submitted, however,
did entitle the Buyer to the fee if it did not exercise.
Although these are not "pure" options they are commonly regarded
as such.
    The objective form, further, leaves to the parties the negotiated 
decision of whether the option fee applies toward the purchase price.



Alternatives
    Where the Buyer is to receive back his option fee the form
may be amended as follows:

30.3  In the event that the option is not exercised in the manner
provided, this option shall be null and void, and Buyer shall
have returned to it (all sums paid theretofore) (the sum of      
$__________ of the amount paid theretofore).


Extensions
         "Buyer shall have the right to extend this option for an
         additional period to _______________________________ by
         giving written notice to extend to the Seller as pro-
         vided in paragraph 2 above, together with payment of an
         additional sum of ________________________ ($         )
         and said extension may be made at any time on or before 
         ____________________________ and such notice and payment
         once mailed shall constitute notice of extension to the
         Seller."


    Where extensions are for multiple periods the Seller may wish
to increase the option fee and the price of the property.
         The Buyer is hereby granted the right, at its sole elec-
         tion, to extend this Option for one or more of the
         Extended Option Periods set forth below by giving a
         written notice of such election to Seller, together with
         Buyer's check in the amount specified below for the
         appropriate Extended Option Period, at least ten (10)
         days prior to the expiration of the original Option
         Period or the expiration of any Extended Option Period
         previously elected:
              (a)  The first Extended Option Period shall be a
                   period of twelve months, beginning on the day
                   following the expiration of the original
                   Option Period; if Buyer elects to so extend,
                   it shall pay the sum of $___________________
                   to Seller at the time notice of such election
                   is given, and the purchase price shall be
                   $____________________.



              (b)  The second Extended Option Period shall be a
                   period of six months beginning on the day
                   following the expiration of the first Extended
                   Option Period; if Buyer elects to so extend,
                   it shall pay the sum of $_________________ to
                   Seller at the time notice of such election is
                   given, and the purchase price shall be
                   $_____________________.
         Only that payment made for the Option Period in which
         Option is exercised shall be applied against the pur-
         chase price at the time of closing. As each Option
         Period expires without the option being exercised, the
         payment for that period is forfeited by the Purchaser
         to the Seller.


Manner Of Exercise
    If the Option is structured as having the purchase agreement
attached as an Exhibit, exercise thereof could be by execution of
the purchase agreement.


         "The option granted herein may be exercised by the
         Buyer's execution of the Exhibit A Purchase Agreement
         and depositing same in the U.S. mails......."

AdditYional Terms
    In a "pure" option the Buyer has "locked" its right to purchase 
the property at a set price by payment of an option fee.  The Buyer 
has an unqualified right to refuse to exercise for any reason whatsoever.
For that right it forfeits the option fee. In many option agreements, 
however, the Buyer has the right to receive back the option price in 
the event that either: an inspection of the property shows it to be 
unsuitable for the Buyer's uses; title is defective or the survey 
discloses material deviations from the contract.  These conditions 
may take the "purity" out of the option but are desired by many Buyers 
before they exercise the option.
    Where such conditions are desired they would be dealt with in
identical manner as those found in purchase agreements. Reference 
should, thus, be made to the sections of the Purchase Agreement on 
"Inspections," "Surveys," "Condition" and "Title" for desired language.