Call Option Deed

About Product

A Call Option Deed allows one party (the Option Holder) to purchase property from another (the Property Owner) at an agreed price within a defined period. This template:

Sets out the grant of the option, exercise mechanics, and payment of the option fee
Defines key terms (e.g. Option Expiry Date, Purchase Price, Option Fee, Nominee)
Includes robust warranties, confidentiality provisions, and dispute-resolution procedures
Provides for nomination, assignment, and extensions of the exercise period
Addresses duty, costs, governing law, and severance

All LY Legal templates are drafted in clear, precise language and reviewed annually to ensure compliance with current Australian law.

► $165.00 (inc GST) - OR provided under your unlimited membership (exc ASIC fee)

► The master document has been signed off by LY Legal and is congruent with Australian law.

General Information

A Call Option is a commercial instrument often used in joint-venture, development, or family-office transactions to:

- Secure the right to acquire an asset without immediate obligation to purchase
- Lock in price and key terms while due diligence or funding is finalized
- Provide certainty around timing, revocability, and post-exercise obligations

This Deed can be adapted for land, shares, business interests, or other assets, and is governed by the laws of the relevant state or territory.

Benefits

► Grants an exclusive purchase right, giving the Option Holder time to complete due diligence and arrange finance

► Locks in the purchase price and key terms up front, mitigating price-risk and negotiation uncertainty

► Includes nomination and assignment provisions, allowing flexibility in who ultimately exercises the option

► Robust warranties and confidentiality clauses protect both parties’ interests

► Clear dispute-resolution and severance clauses minimise downstream litigation risk

Frequently Asked Legal Questions

What happens if the option is not exercised by the Expiry Date?

If the Option Holder does not deliver the Exercise Notice and deposit by the Option Expiry Date, the option lapses and the Option Fee is forfeited to the Property Owner.

Can the Option Holder extend the Exercise Period?

Yes. By delivering a written extension notice and paying the agreed extension fee before the Option Expiry Date, the Option Holder may extend the expiry.

What if the Property Owner becomes insolvent or dies before exercise?

The Deed binds the Property Owner’s legal personal representatives and successors; the option remains exercisable against the estate unless expressly revoked.

Is GST payable on the Option Fee or Purchase Price?

GST treatment depends on the nature of the underlying asset and the parties’ status. This template provides an “if GST is payable…” clause, but you should confirm with your tax adviser.

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 5-10 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Is this document a legal document?

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Is the document easy to read?

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

What lawyers sign off on the LYD documents?

All LYD documents are prepared and signed off by LY Legal.

Are the LYD documents reviewed regularly?

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Can I get a sample of this document?

Yes, please email support@lyd.com.au to request a sample document for you to review.

Published: 14/07/2025