medium · National Real Estate Exam contracts
A buyer and seller enter into an option agreement where the buyer pays $1,000 for the right to buy a home for $300,000 within 90 days. On day 45, the buyer decides to exercise the option. At the moment of exercise, the contract:
- Remains a unilateral contract until the actual delivery of the deed at closing.
- Is voidable by the seller if the market value has increased significantly since day 1.
- Becomes a bilateral purchase agreement binding both parties to perform.
- Requires a second payment of consideration to satisfy the requirement of mutual assent.
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