Contracts
A Texas buyer makes an offer with an option period. The seller accepts. Before the option expires, the buyer terminates using the option. The seller is entitled to:
AThe earnest money only
BThe option fee only (earnest money is returned to the buyer)✓ Correct
CBoth the earnest money and the option fee
DNothing, because the buyer properly exercised the option
Explanation
When a buyer properly terminates within the option period, they receive their earnest money back. The option fee, paid to the seller at the beginning of the option period, is retained by the seller as consideration for the option right.
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