National Real Estate Practice Exam

What role does the optionee play in a real estate transaction?

1. Buyer

2. Seller

3. Tenant

4. Landlord

The correct answer is: Buyer

In a real estate transaction, the optionee is primarily identified as the buyer in the context of an option to purchase agreement. This role involves having the right, but not the obligation, to buy a property at a predetermined price within a specific timeframe. The optionee pays an option fee to the seller, granting them this right. This arrangement allows the optionee to secure potential ownership without immediately committing to the purchase. If they decide to exercise their option, they will proceed with the transaction as the buyer, ultimately leading to the acquisition of the property. The flexibility of this agreement is beneficial for those who may need time to secure financing or make further decisions about the property before fully committing to the purchase. In contrast, the other roles mentioned—seller, tenant, and landlord—are not applicable to the optionee's function in this context. The seller is the party offering the property for sale, while a tenant and landlord pertain to rental agreements rather than purchase options. This distinction clarifies the specific role of the optionee as it relates to buying real estate.