Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam - Topic 5 Question 10 Discussion

Actual exam question for Real Estate Licensing's Massachusetts-Real-Estate-Salesperson exam

Question #: 10
Topic #: 5

[All Massachusetts-Real-Estate-Salesperson Questions]

A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?

BThe terms and conditions of the sale must be stated if the option is to be a valid contract.

CThe consideration for the option right, plus interest, will be automatically applied to the purchase price if the option is exercised.

AAn option is a promise by the optionee to enter into a contract in the future.

DThe potential buyer is the optionor and the seller is the optionee.

Show Suggested Answer

Suggested Answer: B

Comprehensive and Detailed Explanation (150--250 words):

An option contract is a unilateral contract in which the seller (optionor) grants the buyer (optionee) the exclusive right to purchase property at a specified price within a set time. For the option to be valid, the terms and conditions of the future sale must be clearly stated (price, property description, and time period). Consideration (option money) must also be given.

A: Incorrect because only the optionor (seller) is obligated; the optionee (buyer) is not required to purchase.

C: Option consideration is not automatically applied unless the contract specifically states it.

D: Reverses the roles; the seller is the optionor, the buyer is the optionee.

Thus, the correct answer is B.

by Marylyn at Jan 22, 2026, 01:01 PM

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1 month ago

Hmm, this seems like a tricky property law question. I'll need to think carefully about the different types of land acquisition options.

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