New Jersey Real Estate Practice Exam Free 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 types of agreements.
Option A, a sales contract, typically obligates both parties to fulfill the terms of the sale, which does not align with the non-binding nature of an option.
Option B, a contract of sale, also implies a commitment to complete the transaction, contrary to the essence of an option.
Option C, an agreement of sale, similarly suggests a binding arrangement, which is not applicable here.
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