Contracts
In Oregon, what is an 'option contract' in real estate?
AA contract that gives both parties the option to change terms before closing
BA contract where the buyer pays consideration for the exclusive right to purchase a property at a specified price within a specified time, without obligation to do so✓ Correct
CA contract with multiple pricing options
DAn option to extend a listing agreement
Explanation
An option contract gives the buyer (optionee) the exclusive right to purchase a property at a set price within a specified period, but does not obligate the buyer to purchase. The buyer pays option consideration (money, something of value) that is typically non-refundable if the option expires unexercised. If the buyer exercises the option, it becomes a binding purchase contract.
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