What is the term for an agreement to hold open for a set period an offer to sell or lease real property?

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Multiple Choice

What is the term for an agreement to hold open for a set period an offer to sell or lease real property?

Explanation:
Holding an offer open for a set period on real property is created by an option contract. This arrangement gives the buyer or lessee the right to buy or lease at a predetermined price within a defined timeframe in exchange for consideration. The seller commits to keeping the property available if the option is exercised, while the buyer is not obligated to act unless they choose to exercise the option. This differs from a sales contract, which is the actual agreement to transfer ownership; a listing agreement, which is between seller and broker; and a mortgage contract, which is a loan agreement.

Holding an offer open for a set period on real property is created by an option contract. This arrangement gives the buyer or lessee the right to buy or lease at a predetermined price within a defined timeframe in exchange for consideration. The seller commits to keeping the property available if the option is exercised, while the buyer is not obligated to act unless they choose to exercise the option. This differs from a sales contract, which is the actual agreement to transfer ownership; a listing agreement, which is between seller and broker; and a mortgage contract, which is a loan agreement.

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