Exercise of Option Notice

The original owner of the options has a right to send the notice to the other person who has got the right to exercise those options. This notice acts as a document or as a confirmation document for the new owner of the options to let them know that they are authorized to exercise the options.

The agreement of option exercising is signed between the buyer and the seller of the options and shares. Through this agreement, the new buyer has the right to sell or trade those options. However, it is not obligatory for him to do so.

Sometimes, the options are given to be exercised by the buyer for a specific period of time. During that time, the original owner of the shares or options can notify the buyer that he has the authority to exercise those options.

In legal terms, the ownership or authority to use any right or option is specified in a legal written document. This document is basically an agreement between the buyer and seller which is signed at the time of purchase.

Tips to write the exercise of option notice:

There are many important details that are required to be added to this notice. The most important details are the time and the price of the options at which the buyer is authorized to exercise the options.

Moreover, you can add several clauses in the agreement. When this contract or agreement is signed by both seller and buyer, then it becomes obligatory for both parties to respect those agreed upon clauses.

It is the legal responsibility of the seller of the options to inform the buyer about the authorization to exercise those options. When the options are expired, the seller should again send another notice to inform the buyer about it.

What should be included in an exercise of option notice?

  1. Name and address of the previous owner of option as well as new owner
  2. Obligations of both owners
  3. Signatures of both owners
  4. Date at which the notice is being sent
  5. Validation and termination details of the notice

Exercise of Option Notice Sample Text

Date: [dd/mm/yyyy]

Subject: Notice of Exercise of Purchase Option

Dear: [mention recipient’s name]

It is stated that you are hereby notified as the owner of [detail of property/asset] as we have successfully received a payment amount of $[mention the amount at which property is purchased] from you. We appreciate that you abide by all the rules and regulations of the agreement. You are declared to be the new owner of the said asset/property and hereby elects you to exercise the option to sell or trade the property whenever you want.

Signature of Purchaser

Name of Purchaser

Address of Purchaser

Zip, State or Country of Purchaser


Sample Template

MS Word exercise of option notice template