Option Contract Basics Flashcards

Option Contract Basics Flashcards lease option or option to buyIt allows the lessee (renter) the option to purchase the property at the end of the lease term How can a contract be terminated if the optionor (seller) breaches the agreement?Sued by the optionee for montoary fees and the new owners would have to see to the optionees What happens if the optionee decides to exercise the option?then the contract would carry on as normal Who can enforce an option contract?Only an optionee (buyer) can enforce an option contract. a unilateral contract option feea fee that the optionor have to pay to enter in an option contract.What makes an option contract different from aregular sales contract?In a "regular" sales contract, both the buyer and seller are bound to carry out their contractual obligations. In an option contract, only the optionor (seller) is bound by the option contract; therefore, it is a unilateral contract. While the option gives the optionee (buyer) the right to buy the subject property, it does not require the optionee to buy it.Can an optionee (buyer) ever be obligated to exercise the option to purchase?Yes What is a real estate licensee's role in an option contract?refer the lessee to an attorney option contract,is an offer to purchase a specific piece of realestate, but without the obligation to buy it. it is an unilateral contract