Contracts
In New Jersey, an option contract in real estate gives the optionee (buyer):
AThe obligation to purchase the property within a set time
BThe right, but not the obligation, to purchase the property at a specified price within a specified time✓ Correct
CAn automatic first right of refusal on future sales
DImmediate equitable title to the property
Explanation
An option contract is a unilateral contract in which the seller (optionor) promises to keep the offer open, and the buyer (optionee) pays consideration (option fee) for the right to purchase at a set price within a set period. The optionee can exercise or let the option expire.
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