New Jersey Real Estate License Exam Practice Question
A contract that gives a purchaser the right to buy a property at a fixed price within a stated period of time, without obligating the purchaser to do so, is known as:
Correct Answer: D
Rationale: An option contract grants the purchaser the exclusive right to buy a property at a predetermined price within a specified timeframe, without any obligation to proceed with the purchase. This flexibility distinguishes it from other agreements.
Option A, a sales contract, represents a binding agreement for the sale of property, obligating both parties to fulfill the terms. Option B, a contract of sale, similarly implies a commitment to complete the transaction. Option C, an agreement of sale, also indicates an intent to sell, lacking the non-obligatory nature essential to an option contract. Thus, D accurately describes the unique characteristics of the arrangement.
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