California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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.