Option contract: right to buy a property during a specified period of time, at a specified price. Not an obligation to buy the property, rather a right that may or may not be exercised.

• A. A contract that creates an obligation to purchase by a specified date
• B. A contract that gives a party the right to purchase within a set period at a set price, without obligation to buy
• C. A contract that requires a buyer to purchase regardless of price
• D. A contract that only allows selling a property

Answer: (B)

An option contract in real estate gives the buyer the right, but not the obligation, to purchase a property within a defined period at an agreed price. The buyer may exercise that right by a set deadline, paying the purchase price, and the seller is obligated to go through with the sale if the option is exercised. If the buyer chooses not to exercise, the option expires and no sale occurs. This is different from a standard purchase agreement, which creates an obligation for the buyer to buy the property by a certain date and at the specified price. The other choices describe contracts that impose an obligation to buy or focus on selling, which do not fit the nature of an option.