Which scenario would be considered a qualifying residential transaction?

• A. Lease with option to purchase of unimproved land intended for 3 residential units
• B. Sale of improved commercial property with 5 units
• C. Sale of industrial property with 2 units
• D. Transfer of a business interest involving property with 6 residential units

Answer: (A)

Qualifying residential transactions hinge on real estate intended for residential use, typically one to four dwelling units, or land to be developed for such use. The lease with option to purchase of unimproved land intended for three residential units fits this because the end use is residential development, and the transaction centers on a property intended for residential purposes. The other scenarios involve properties used for commercial or industrial purposes or a business-interest transfer, which are not residential transactions.