Contracts
In NH, an option contract in real estate gives the optionee (buyer):
AAn obligation to purchase the property by the option deadline
BThe right, but not the obligation, to purchase the property at a set price within a specified period✓ Correct
CAn automatic first right of refusal on any future sale
DEquitable title to the property immediately upon signing
Explanation
An option contract gives the optionee the right—but not the obligation—to purchase the property at a predetermined price within a specified timeframe. In exchange for this right, the optionee typically pays an option fee. If not exercised, the option expires and the fee is generally retained by the optionor.
Related New Hampshire Contracts Questions
- An 'as-is' clause in a New Hampshire purchase and sale agreement:
- Under NH law, which of the following is NOT a required element for a valid real estate sales contract?
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- A novation in a New Hampshire real estate transaction means:
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