Contracts

In Kansas, a 'real estate purchase option' exercised by the buyer creates a(n):

AInformal listing agreement
BBinding purchase and sale contract upon the terms specified in the option✓ Correct
CExtended due diligence period only
DRight of first refusal for 30 days

Explanation

When a buyer exercises a purchase option, it creates an immediate binding obligation for both parties to proceed with the purchase on the terms specified in the option agreement.

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