New Jersey Real Estate Practice Exam Free 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 for it to be valid, making option B accurate. This ensures both parties understand their rights and obligations.
Option A is incorrect as it misdefines the roles; the optionor grants the option, while the optionee holds it.
Option C is misleading; while consideration is often credited toward the purchase price, it is not automatic and depends on the specific agreement.
Option D reverses the definitions; the potential buyer is the optionee, and the seller is the optionor. Clarity in these roles is essential for understanding the option agreement.
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