Contracts
An option contract in Utah gives the optionee the:
AObligation to purchase the property at a set price
BRight to purchase the property at a set price within a specified period✓ Correct
CRight to lease the property for up to 99 years
DObligation to sell to the optionor at their request
Explanation
An option contract gives the optionee the right (but not the obligation) to purchase the property at an agreed price within a specified time. The optionor is bound to sell 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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