Contracts
Option Contract
A concise definition for the California Real Estate Exam study guide.
Definition
An option gives the optionee the right, but not the obligation, to buy within a stated period. The optionor is bound during the option period in exchange for consideration, while the optionee may choose not to exercise.
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 →