A Wisconsin seller of a single-family home must furnish the completed real estate condition report to the buyer by what deadline?

No later than 10 days after acceptance of the contract

Before the buyer may make a written offer

Within 3 business days after acceptance

At or before the closing of the sale

Exam vocabulary · unilateral contract

What Is Option Contract in Real Estate?

Definition

An option contract is a unilateral agreement in which the optionee pays non-refundable consideration for the right, but not the obligation, to buy at a set price within a set period. Only the optionor is bound, and the deal becomes bilateral the moment the option is exercised.

How the exam tests option contract

These mirror the phrasing you will see on test day. Answer them, then read the explanation whether or not you got it right.

Option Contract: exam questions1/2

Contracts

In an option contract for the purchase of real estate, which statement is accurate?

score 0/0

Every option contract question, answered

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. In an option contract for the purchase of real estate, which statement is accurate?
- ANeither party is bound at any point until the closing actually occurs and the deed is delivered to the buyer
- BThe optionee must purchase, and the optionor may refuse to sell
- CThe optionee holds a right to buy, and the optionor is bound to sell if the option is exercisedcorrect
- DBoth parties are bound to complete the sale from the outset
Why: An option is unilateral in effect: the optionee holds a right to buy, and the optionor is bound to sell if the option is exercised. Saying both parties are bound to complete the sale from the outset describes an ordinary bilateral purchase contract instead.
Contracts
2. A Wisconsin seller of a single-family home must furnish the completed real estate condition report to the buyer by what deadline?
- ABefore the buyer may make a written offer
- BWithin 3 business days after acceptance
- CAt or before the closing of the sale
- DNo later than 10 days after acceptance of the contractcorrect
Why: Wis. Stat. 709.02(1) requires the owner to furnish the report "not later than 10 days after acceptance of a contract of sale or option contract." Wisconsin's timing runs after acceptance, unlike states that require the disclosure before an offer is made.
Property disclosures

Where option contract sits in the exam vocabulary

Option Contract is a unilateral contract, and so are right of first refusal. That matters more than it sounds: a multiple-choice item builds its wrong answers out of siblings like these, because they are the options that look plausible to someone who has learned the category but not the distinction. If option contract appears as the correct answer, expect to see right of first refusal on the same screen.

The exam most often tries to catch you by putting option contract next to right of first refusal. Each of those is a real concept sitting close enough to be tempting, and the question usually turns on the single feature that separates them rather than on the definition of either one. Read the contrast, not the term.

Related exam terms

Tested alongside

Often confused with

Option Contract belongs to the unilateral contract family of exam concepts. When it is solid, take the free real estate exam prep or browse the full real estate exam vocabulary.