Committee weighs fixes for option and additional option‑fee handling

Committee members discussed long‑standing field problems about how option and additional option (extension) fees are paid and credited. Brokers described cases where additional option fees were not credited at closing or title refused to record credits; an attorney explained the courts treat nominal consideration and short timeframes as sufficient support for an option right (citing the JPitch line of authority). One attendee summarized the practical problem: “We just need it all to go to one place.”

The committee considered three drafting approaches: (1) require payment to escrow/escrow agent, (2) allow payment to seller or escrow agent provided the contract shows consideration received, or (3) acknowledge nominal consideration and remove language about automatic crediting to the sales price. Members favored clarifying the payment destination, adding a short deadline for delivery, and stripping language that creates confusion about whether an additional option fee will be credited at closing; staff will prepare redlines and circulate them to the working group.