45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 12 Unit 4 Exam

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Question #1
Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he chooses to exercise the option within three years. How large does the option fee need to be in order to be legally binding?
A.   At least $1,000
B.   1% of the purchase price
C.   Any amount agreed to by the parties
D.   10% of the purchase price
Question #2
Which of these statements accurately describes the purpose of a real estate option agreement?
A.   Obligates the buyer to enter into a purchase agreement by a specific date
B.   Provides a lessee, or renter, with the option to purchase the rented property at any time during the tenancy
C.   Creates the option to buy a property in the future, within a specific time frame and at a particular price
D.   Used by an investor to open a stock options account with an investment broker
Question #3
With an option contract, which of the following constitutes a breach of contract?
A.   The optionee opts not to purchase the property.
B.   The optionee enters into a sales contract on another property with a different seller.
C.   The optionor sells the property without the option contract to someone other than the optionee.
D.   The optionor sells a different piece of property to a different optionee.
Question #4
A/an_______ contract is an offer to purchase a specific piece of real estate that does not obligate the offeror to buy it.
A.   Buyer agency
B.   Sales
C.   Listing
D.   Option

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