Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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If a buyer pays $5,000 to a seller for an option to purchase the seller's property, what does this option grant the buyer?

The right to purchase the property regardless
A reduction in the property's price
Buyer does not have to purchase the property in the option period
Immediate ownership of the property

The correct answer is: Buyer does not have to purchase the property in the option period

The option grants the buyer the right to purchase the property, but it does not obligate them to do so. By paying the option fee of $5,000, the buyer gains the ability to decide whether or not to complete the purchase within a specified period. This flexibility is a crucial feature of an option agreement; it allows the buyer to assess the property or their financial situation before making a commitment. While options can lead to a purchase, they do not confer immediate ownership nor guarantee a purchase by the buyer. The other choices imply mandatory purchasing or changes in ownership status, which are not applicable in the context of an option to purchase.