What is the Straight Option to Purchase strategy?

a) The buyer obtains a straight option to purchase the property from the seller within a specified period at a predetermined price.

b) The buyer leases the property with the option to purchase at the end of the lease term.

c) The buyer assumes the seller's existing mortgage and makes regular payments.

d) The buyer and seller agree on seller financing with a carry back arrangement.

What is the purpose of the option consideration in a Straight Option transaction?

a) To reduce the purchase price of the property.

b) To cover the seller's outstanding mortgage balance.

c) To secure the right to purchase the property within the option period.

d) To pay for property maintenance and expenses.

How long is the option period typically in a Straight Option transaction?

a) Several weeks

b) Several months

c) Several years

d) The option period varies depending on the agreement.

What happens if the buyer decides to exercise the option to purchase during the option period?

a) Both parties proceed with the necessary steps for closing and transferring ownership.

b) The buyer assumes the seller's existing mortgage.

c) The purchase price is renegotiated.

d) The buyer becomes responsible for property taxes and insurance.

True or False: The buyer has the obligation to exercise the option in a Straight Option transaction.

a) True

b) False

What is the predetermined price in a Straight Option transaction?

a) The asking price of the property.

b) The appraised value of the property.

c) The market value of similar properties.

d) The price agreed upon by the buyer and seller in the option agreement.

What happens if the buyer chooses not to exercise the option within the specified period?

a) The buyer is refunded the option consideration.

b) The option period is extended.

c) The buyer has the option to negotiate a new purchase price.

d) The option expires, and the buyer does not have any further rights or obligations.

Who initiates the closing and transfer of ownership in a Straight Option transaction?

a) The buyer

b) The seller

c) The lender

d) The closing agent

What legal document is typically involved in a Straight Option transaction?

a) Purchase and Sale Agreement

b) Option Agreement

c) Lease Agreement

d) Promissory Note

Where does the closing typically take place in a Straight Option transaction?

a) Seller's attorney's office

b) Buyer's attorney's office

c) Title company's office

d) Real estate agent's office