An option agreement is
A) a contract transferring the fee simple to a new owner.
B) a contract by which the offeror of property promises to hold his offer open for a period of time during which the offeree can accept the offer and the property can't be sold to another.
C) a contract by which an offeree promises to buy the property offered at a later date set in the contract.
D) a contract that provides that a seller will retain the title in the property until the buyer has made all of the required payments.
E) a contract that provides that a debtor will transfer title in the property to a creditor as security for repayment of the debt.

Question

Quizplus · Accepted Answer

An option agreement is a contract where the seller agrees to keep an offer to sell open for a specified period, allowing the buyer to decide whether to proceed with the purchase. It does not immediately transfer ownership but gives the buyer the exclusive right to buy under the terms agreed upon during the option period.

An Option Agreement Is