Flashcard 12 - Contracts Flashcard Set for the Real Estate License Exam

It is an agreement between competent parties based on legal consideration, creating legally enforceable duties and obligations and granting exclusive right to buy, sell, or lease a property at a given price within a stated period of time.

When an option is given, it is usually because one party isn’t quite ready yet to buy/sell/lease so that a (usually) small consideration amount is given to allow a specific period of time to elapse to make that final decision.