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Contracts

Option

A concise definition for the California Real Estate Exam study guide.

Definition

A contractual right to purchase or lease on specified terms within the option period. An option is a contract right, NOT present ownership of the property.

Why it matters on the California real estate exam

Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.

Study this topic in context

Read the related chapter for the surrounding concepts, examples, and exam tips.

Chapter 3: Contracts, Offers, Contingencies & Remedies →