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.   Any amount agreed to by the parties
C.   1% of the purchase price
D.   10% of the purchase price
Question #2
Which of these statements accurately describes the purpose of a real estate option agreement?
A.   Used by an investor to open a stock options account with an investment broker
B.   Creates the option to buy a property in the future, within a specific time frame and at a particular price
C.   Obligates the buyer to enter into a purchase agreement by a specific date
D.   Provides a lessee, or renter, with the option to purchase the rented property at any time during the tenancy
Question #3
With an option contract, which of the following constitutes a breach of contract?
A.   The optionor sells a different piece of property to a different optionee.
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 optionee opts not to purchase the property.
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.   Listing
B.   Buyer agency
C.   Sales
D.   Option

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