Under an option to buy, the ownership of land will change when the

An option to buy is a unilateral contract where the seller (optionor) grants a potential buyer (optionee) the exclusive right to purchase a property at a set price within a specified period. The ownership of the property does not change when the option is created. The pivotal action is the optionee's formal exercise of the option. This act converts the unilateral option into a binding bilateral purchase and sale agreement, obligating both parties to proceed with the transaction, which culminates in the transfer of ownership at closing.

A. Signing the option only creates the right to buy for the optionee and the obligation to sell for the optionor; it does not transfer ownership.

B. An optionor's failure to fulfill their obligation is a breach of contract, which may lead to legal action, but it does not itself cause the ownership to change.

D. The expiration of the specified time without the option being exercised simply terminates the optionee's right to buy, and no change of ownership occurs.

1. University Courseware/Textbook:

Jennings, M. M. (2020). Real Estate Law (11th ed.). Cengage Learning. In Chapter 10, "Real Estate Contracts," the text clarifies that an option is a right to buy, not a contract for sale. It states, "When the option is exercised, a contract [for sale] is formed." This confirms that the exercise of the option is the event that initiates the process leading to a change in ownership. (See Section 10-10, "Option Contracts").

2. Academic Publication (Law Treatise):

Singer, J. W. (2017). Property Law: Rules, Policies, and Practices (7th ed.). Aspen Casebook Series. In the chapter on real estate transactions, the nature of an option contract is described. The exercise of the option is the condition precedent that creates a mutually binding contract for the sale of the land, which is then enforced to change ownership. (See Chapter 10, Section C: "The Executory Contract").

3. Official Massachusetts State Resource (Implicit):

Massachusetts Board of Registration of Real Estate Brokers and Salespersons. (2023). Real Estate Candidate Information Bulletin. PSI Services LLC. The bulletin outlines the exam content, which includes "Contracts," "Forms of Conveyance," and "Title Transfer." The legal distinction between an option (a right) and a purchase and sale agreement (a binding contract leading to title transfer) is a fundamental principle tested under these topics. The correct answer reflects the proper legal sequence for a title transfer originating from an option.