Contracts
Under NH law, a real estate 'option agreement' requires the optionor (seller) to keep the offer open for the option period. The consideration paid for the option:
AIs applied toward the purchase price if the option is exercised
BIs forfeited by the optionee if the option is not exercised, unless the agreement provides otherwise✓ Correct
CMust be refunded if market conditions change
DIs the same as the earnest money deposit
Explanation
The option consideration (fee paid to keep the offer open) is generally retained by the seller if the optionee does not exercise the option. This is the seller's compensation for taking the property off the market during the option period. The agreement may provide that the option fee applies to the price if exercised.
Related New Hampshire Contracts Questions
- In NH, the 'time is of the essence' clause in a purchase and sale agreement means:
- A buyer in New Hampshire inserts a home inspection contingency into the purchase agreement. This allows the buyer to:
- In a NH 'short sale,' the seller's lender must agree to:
- The New Hampshire Property Condition Disclosure statement must be provided to:
- A NH buyer receives the seller's signed counteroffer on a Friday evening. The buyer must accept by Saturday noon per the counteroffer's terms. If the buyer does not respond by Saturday noon:
- An escalation clause in a NH purchase offer allows the buyer to:
- A New Hampshire buyer includes a financing contingency in their offer. If the buyer cannot secure financing, the contingency allows them to:
- A NH lease that auto-renews (evergreen lease) unless the tenant provides notice requires the tenant to:
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →