Question

One obligation of an optionee is to

A. pay a consideration for the option right.
B. deliver the right of quiet enjoyment.
C. obtain any zoning change necessary to fit the optionee's personal plan for the subject of the option.
D. perform the option right at the time the option is signed.

Answer 1

The correct answer is A, where the optionee's obligation is to pay consideration for the option right. This payment gives the optionee the potential future right to purchase property but does not confer ownership or other obligations like zoning changes immediately.

Step-by-step explanation:

One obligation of an optionee is to pay a consideration for the option right, which makes option A the correct answer. An optionee is the person who has received the right, but not the obligation, to purchase property at a future date and at a predetermined price. For this right, the optionee must provide a consideration, which is typically a sum of money paid to the optionor (the person granting the option). The payment for the option does not ensure quiet enjoyment, nor does it obligate the optionee to obtain zoning changes or perform the option right immediately upon signing; those are separate issues that may arise based on what the optionee plans to do with the property if they execute the option.

Property rights include the right to enter into contracts with respect to the property, but owning an option does not confer ownership of the property itself until the option is exercised. Additionally, zoning regulations have been widely adopted across the United States since first being introduced in New York City in 1916. These regulations do not fall under the optionee's obligations when merely holding the option.

Answer 2

An optionee's obligation is to pay consideration for the option right, which secures the exclusive right to purchase a property within a set time frame at a specified price without requiring immediate purchase.

This correct answer is none of the above.

Step-by-step explanation:

The obligation of an optionee generally includes paying a consideration for the option right, which is the right to purchase or not to purchase a property or asset within a set time frame at a specified price.

It does not require the optionee to deliver the right of quiet enjoyment, obtain any zoning change necessary to fit their personal plan, or perform the option right at the time the option is signed.

The consideration is usually a non-refundable fee that gives the optionee the exclusive right to buy but does not oblige them to buy.

This allows the optionee to secure terms ahead of time while they decide whether exercising the option is in their best interest, often while conducting due diligence such as planning for zoning approvals, if necessary.

This correct answer is none of the above.