Tennessee Real Estate License Exam Practice Question
A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?
Correct Answer: B
Rationale: An option to purchase land must clearly outline the terms and conditions of the sale to be valid, making option B accurate. This ensures both parties understand their rights and obligations.
Option A incorrectly defines the roles; the optionor grants the option, while the optionee holds it.
Option C misrepresents the relationship between consideration and purchase price; while consideration is important, it does not automatically apply to the purchase price unless specified in the option agreement.
Option D reverses the roles; the potential buyer is the optionee, and the seller is the optionor.
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