Contracts
In a Vermont lease option arrangement, the tenant-buyer's option consideration:
AIs always refundable if the tenant does not exercise the option
BIs typically non-refundable but may be credited toward the purchase price if exercised✓ Correct
CMust equal at least 10% of the purchase price under Vermont law
DMust be held in escrow by a licensed Vermont attorney
Explanation
In a lease option, the consideration paid for the option right is typically non-refundable if the option is not exercised. If the tenant-buyer does exercise the option, the parties often agree to credit some or all of the option consideration toward the purchase price.
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