Information about the Option Property Program

What is an Option Property?

Renovated Option Property in Manchester

BHC’s Center for Neighborhood Revitalization (CNR) purchases selling options with our Revolving Fund on vacant or abandoned buildings in Richmond’s old neighborhoods.  An “Option To Sell” gives CNR an exclusive right to find a purchaser for the property during a specific time frame at an established price.  This means that CNR would use the agreed upon period of time to find a purchaser committed to renovating the property.  CNR does not profit from the sale of an option.  By keeping prices as low as possible, we hope to move more properties back to productive use.

Basic Steps for an Option Agreement

1. Property Owner and The Alliance review the Option Agreement.

2. CNR evaluates property for condition and to determine if it can find a buyer for the house.

3. Terms and purchase price of Option are determined that will include the amount of time required to sell the property.

4. Option Agreement is drafted for the Owner and CNR to sign.

5. CNR pays Owner for this Option from its Revolving Fund.

6. CNR actively promotes the property through the Better Housing Coalition website, advertising, and various database contacts.

7. Once a buyer is found, CNR will draft a separate Purchase Contract that will go to a real estate closing attorney.

8. All offers will continue to be presented to the Seller for a particular property until a Purchase Contract is signed.

9. The Buyer, upon signing a purchase contract, will also enter into a Rehabilitation Agreement with CNR to ensure that the property is properly renovated within a reasonable time period.

CNR pays $500.00 for the exclusive right to find a purchaser for a property that is reimbursed to our Revolving Fund.  In addition, we charge a $3,000.00 flat fee to cover our internal administrative and legal expenses.  Both of these expenses are paid to CNR by the purchaser of the property.