Contracts
A Minnesota lease agreement contains an option to purchase. The tenant exercises the option. This creates:
AA completed sale immediately
BA binding obligation to buy and sell on the agreed terms✓ Correct
CAn extended lease period
DA right of first refusal only
Explanation
When a tenant exercises a purchase option in a Minnesota lease, it creates a binding obligation for both parties: the tenant must purchase and the landlord must sell on the terms specified in the option. The option exercise typically triggers a formal purchase agreement. Lease-options are used in Minnesota as a rent-to-own strategy.
Related Minnesota Contracts Questions
- A Minnesota buyer who wants to make an offer on a property that is already under contract with another buyer may:
- A Minnesota purchase agreement that has been fully signed by both buyer and seller but the buyer's financing falls through is resolved when:
- What type of contract exists when a buyer and seller have agreed on terms but have not yet signed a written purchase agreement in Minnesota?
- In Minnesota, an option contract gives the optionee:
- A contingency in a Minnesota purchase agreement that protects the buyer if they cannot sell their current home is called a:
- A Minnesota purchase agreement contingency that states 'Buyer must sell existing home by June 1' is a:
- In Minnesota, liquidated damages in a purchase agreement are typically:
- In Minnesota, a buyer who defaults on a purchase agreement may face which consequences?
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