Contracts
A lease with an option to purchase allows the tenant to:
ARequire the landlord to sell the property at any time
BPurchase the property at a specified price within a specified time period by exercising the option✓ Correct
CAutomatically own the property after the lease expires
DSublease the property to a third party at their own price
Explanation
A lease with an option to purchase gives the tenant the right (but not the obligation) to buy the property at a specified price within a specified period. The tenant pays option consideration to keep the right open. If the tenant exercises the option, the landlord must sell at the agreed price.
Related Illinois Contracts Questions
- An 'as-is' clause in a real estate contract means:
- Under Illinois law, if a seller refuses to sell after a valid contract is signed without legal justification, the buyer may seek which remedy MOST specific to real estate?
- Liquidated damages in a real estate contract refer to:
- A bilateral contract in real estate is one in which:
- A buyer's offer is submitted and the seller responds with different terms. This is known as a:
- Under the Illinois Residential Real Property Disclosure Act, which of the following properties is EXEMPT from disclosure requirements?
- A real estate contract in Illinois is legally binding when:
- In Illinois, the attorney review period in a residential real estate contract typically lasts:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →