Contracts
In Hawaii, a property owner who grants a 6-month option to buy in exchange for $5,000 from a potential buyer must:
AA. Return the $5,000 if the buyer doesn't exercise the option
BB. Keep the $5,000 as consideration for granting the option, which is not refundable if the option is not exercised✓ Correct
CC. Apply the $5,000 to the purchase price regardless of whether the option is exercised
DD. Hold the $5,000 in escrow until the option period expires
Explanation
Option consideration ($5,000) is paid for the right to hold the property off the market. If the buyer doesn't exercise the option, the consideration is typically non-refundable and kept by the seller.
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