An option to purchase binds which of the following parties?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

An option to purchase binds which of the following parties?

Explanation:
An option to purchase is a unilateral contract in which the seller is bound to keep the property available and to sell if the option holder exercises within the agreed terms. The person who holds the option has the right, but not the obligation, to buy during the option period. So the seller is the party bound by the option; the buyer isn’t obligated to purchase unless they choose to exercise the option. If the option expires, the seller is free to sell to someone else. That’s why the binding party is the seller only.

An option to purchase is a unilateral contract in which the seller is bound to keep the property available and to sell if the option holder exercises within the agreed terms. The person who holds the option has the right, but not the obligation, to buy during the option period. So the seller is the party bound by the option; the buyer isn’t obligated to purchase unless they choose to exercise the option. If the option expires, the seller is free to sell to someone else. That’s why the binding party is the seller only.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy