Contracts
What is an 'option to purchase' in Pennsylvania real estate and how does it differ from a right of first refusal?
AThey are legally identical — both give the holder the right to purchase at a set price
BAn option gives the holder the unilateral right to purchase at a set price during the option period; a right of first refusal only activates when the owner decides to sell and must match a third-party offer✓ Correct
CAn option is for commercial property; a right of first refusal is for residential
DOptions require court approval in Pennsylvania; rights of first refusal do not
Explanation
An option is a unilateral contract where the owner (grantor) promises to sell at a fixed price during the option period; the optionee can exercise (or not) at their sole discretion. A right of first refusal (ROFR) is a contingent right — it activates only when the owner receives a third-party offer and gives the ROFR holder the right to match it.
Related Pennsylvania Contracts Questions
- A Pennsylvania foreclosure sale that results in a 'deficiency' means the foreclosure sale price was:
- In Pennsylvania, the earnest money deposit in a real estate transaction is typically held by:
- What is the legal effect of a 'time is of the essence' clause in a Pennsylvania real estate contract?
- Pennsylvania's Uniform Written Obligations Act requires that for a promise without consideration to be enforceable:
- The Pennsylvania Seller's Property Disclosure Statement must be delivered to the buyer:
- In Pennsylvania, an Agreement of Sale for residential real estate must include which of the following to be enforceable?
- A Pennsylvania listing agreement is a contract between:
- What is a 'contingency' in a Pennsylvania real estate contract and how does it protect the parties?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →