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Real Estate Licensing Maryland-Real-Estate-Salesperson Exam - Topic 6 Question 16 Discussion

Shelly buys Mark's house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?
D) Shelly will have to sell the house to Monique.
A) Mark will have to refund Monique's option fee.
B) Nothing will happen, as long as Shelly has a fully executed sales contract with Mark.
C) Shelly and Mark must form a new option agreement.

Real Estate Licensing Maryland-Real-Estate-Salesperson Exam - Topic 6 Question 16 Discussion

Actual exam question for Real Estate Licensing's Maryland-Real-Estate-Salesperson exam
Question #: 16
Topic #: 6
[All Maryland-Real-Estate-Salesperson Questions]

Shelly buys Mark's house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?

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Suggested Answer: D

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

An option contract gives the optionee (Monique) the exclusive right to purchase a property within a specified period and under specific terms, but not the obligation to do so.

When properly executed and supported by consideration (the option fee), the option is a binding contract on the property owner (Mark) and any subsequent owners who take title with constructive notice of the existing option.

Therefore, when Monique exercises her valid option within the option period, Shelly must honor it---the property must be sold to Monique under the agreed terms.


Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Real Estate Contracts'' Module

Maryland Contract Law Principles -- Option Contracts and Specific Performance.

by Emelda at Jun 20, 2026, 05:40 AM

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Samira
2 hours ago
I feel like this situation could get complicated. I don't think Shelly would have to sell to Monique, but I’m not sure what happens to the option fee.
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Moon
5 days ago
This kind of reminds me of a practice question we did about options and contracts. I think the answer could be B, but I'm not completely confident.
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Evelynn
10 days ago
I'm not entirely sure, but I feel like if Shelly has a solid contract with Mark, it might protect her from Monique's option.
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Kizzy
16 days ago
I think I remember that an option period gives the buyer the right to purchase, so maybe Monique can still exercise her option?
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