Contracts
In Tennessee, an option contract gives the optionee the:
AObligation to purchase the property within the option period
BRight but not the obligation to purchase the property within the option period✓ Correct
CRight to force the seller to reduce the price
DRight to lease the property for the option period
Explanation
An option contract gives the optionee the right, but not the obligation, to purchase the property at a specified price within a specified period. The optionor (seller) is bound if the optionee exercises the option.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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