Which statement about an option contract is TRUE?

An option contract is a unilateral agreement where the property owner (optionor) grants a prospective buyer (optionee) the exclusive right to purchase a property at a fixed price within a specified period. In exchange for a non-refundable option fee (consideration), the seller is legally obligated to sell if the buyer chooses to exercise the option. However, the buyer is not obligated to purchase, making the obligation one-sided on the part of the seller.

A. The buyer (optionee) has the right, but not the obligation, to purchase the property. The contract is unilateral.

C. The option fee is the non-refundable consideration paid to the seller for their promise to hold the offer open.

D. An option contract is unenforceable without consideration (the option fee) paid by the buyer to the seller.

1. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual. Chapter 9, "Real Estate Contracts," Section: "Options to Purchase Real Estate," pp. 9-20 to 9-21. The manual states, "An option is a contract by which an owner (optionor) gives a prospective purchaser or lessee (optionee) the right to buy or lease the owner’s property at a fixed price within a stated period of time... The optionee is not obligated to buy... The optionor is legally obligated to sell if the optionee exercises the option." It also confirms that consideration is required and is not refundable if the option is not exercised.

2. Galaty, F. W., Allaway, W. J., & Kyle, R. C. (2020). Modern Real Estate Practice in North Carolina (10th ed.). Dearborn Real Estate Education. Chapter 11, "Real Estate Contracts," Section: "Options." This text clarifies that in an option contract, "the optionor (owner) is bound to sell; the optionee (prospective purchaser) is not bound to buy... The option fee is not refundable if the optionee decides not to buy."