California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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What type of contract is described where Owner A agrees to sell her property to Buyer B for a set price within the next year if Buyer B wishes?

Lease agreement
Option to purchase contract
Mortgage contract
Rent-to-own agreement

The correct answer is: Option to purchase contract

An option to purchase contract is a type of contract where the seller, or owner, agrees to sell a property to a potential buyer for a set price within a specified period of time, typically a year. This option gives the buyer the right to purchase the property, but does not obligate them to do so. The other options given, such as a lease agreement, mortgage contract, or rent-to-own agreement, do not describe exactly what is stated in the question. A lease agreement is a rental contract for a property, not a sale. A mortgage contract is a loan agreement for purchasing property, not a sale agreement. A rent-to-own agreement is a hybrid between renting and purchasing a property, but it involves a longer time period and an eventual purchase, whereas the correct answer describes a shorter time frame and an optional purchase. Therefore, these options are not the best fit for the type of contract described in the question.