Contracts
In Maine, an option contract gives the optionee the:
AObligation to purchase the property at the stated price
BRight but not the obligation to purchase within a specified time✓ Correct
CRight to sublease the property
DAbility to encumber the property with a lien
Explanation
An option contract gives the optionee (potential buyer) the right, but not the obligation, to purchase the property at a stated price within a specified time period.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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