Contracts
In South Dakota, a 'lease-option' agreement allows a tenant to:
ALease the property at a below-market rent automatically
BLease the property with the right (option) to purchase it during or at the end of the lease term✓ Correct
CLease only with the obligation to purchase at lease end
DOption to renew the lease for any desired length
Explanation
A lease-option combines a lease (with the right to occupy and use) with an option (the right but not obligation to purchase). The tenant/optionee decides whether to exercise the purchase option.
Related South Dakota Contracts Questions
- In South Dakota, a real estate contract that violates public policy (such as a contract to discriminate in a real estate transaction) is:
- In South Dakota, a purchase agreement that includes a 'survival clause' means that specified representations:
- In South Dakota, a real estate agent acting as a buyer's representative should review the purchase agreement with their client to ensure:
- In South Dakota, a 'contingent offer' means the buyer's obligation is:
- In South Dakota real estate, a 'backup offer' is:
- In South Dakota, which party typically holds the earnest money during the transaction?
- In South Dakota, the Statute of Frauds requires that contracts for the sale of real property be:
- In South Dakota, a real estate option contract gives the optionee the right to purchase a property, but the optionor (property owner) is:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →