Contracts
Iowa's 'option to purchase' contract differs from a regular purchase agreement because:
AThe option to purchase requires the seller to buy back the property
BThe option gives the optionee the right but not the obligation to purchase within the option period✓ Correct
CThe option requires no consideration
DOptions are only valid for commercial properties in Iowa
Explanation
An option contract gives the optionee (buyer) the right to purchase, but no obligation to do so. The optionor (seller) is bound to sell if the option is exercised but the optionee may simply let the option expire.
Related Iowa Contracts Questions
- Iowa's real estate purchase agreement typically provides that possession of the property transfers to the buyer:
- Under Iowa law, what is 'specific performance' in a real estate contract dispute?
- An Iowa purchase agreement includes an escalation clause stating the buyer will beat any competing offer by $2,000 up to a maximum of $315,000. A competing offer comes in at $308,000. What is the buyer's escalated price?
- An Iowa buyer submits an offer that includes a home sale contingency, giving them 30 days to sell their current home. This contingency protects the buyer by:
- An Iowa land contract (contract for deed) differs from a mortgage because:
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