California Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 740

What type of contract is described where Owner A agrees to sell her property to Buyer B for a set price within the next year if Buyer B wishes?

Lease agreement

Option to purchase contract

An option to purchase contract is a type of contract where the seller, or owner, agrees to sell a property to a potential buyer for a set price within a specified period of time, typically a year. This option gives the buyer the right to purchase the property, but does not obligate them to do so.

The other options given, such as a lease agreement, mortgage contract, or rent-to-own agreement, do not describe exactly what is stated in the question. A lease agreement is a rental contract for a property, not a sale. A mortgage contract is a loan agreement for purchasing property, not a sale agreement. A rent-to-own agreement is a hybrid between renting and purchasing a property, but it involves a longer time period and an eventual purchase, whereas the correct answer describes a shorter time frame and an optional purchase. Therefore, these options are not the best fit for the type of contract described in the question.

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Mortgage contract

Rent-to-own agreement

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