Contracts
An option contract in Iowa real estate gives the buyer:
AThe obligation to purchase the property at the agreed price
BThe right but not the obligation to purchase the property within a specified time at a set price✓ Correct
CAutomatic financing approval from the seller
DThe right to subdivide the property during the option period
Explanation
An option contract grants the optionee (buyer) the exclusive right to purchase a property at a fixed price within a defined period. The optionor (seller) is obligated to sell if the option is exercised, but the optionee has no obligation to buy.
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