PSI New Jersey Real Estate State Practice Exam

An option contract is designed specifically to grant one party, in this case, Seller A, the right but not the obligation to sell property at a predetermined price within a specific time frame to another party, Buyer B. This kind of contract creates a binding agreement where the seller cannot accept other offers during the option period, effectively giving Buyer B exclusive purchasing rights. This structure is particularly useful in real estate transactions when the buyer needs time to evaluate the property or secure financing.

In contrast, a mutual contract typically refers to agreements where both parties have obligations, but it does not specifically set an exclusive offer for a period. A purchase agreement is generally used once the buyer has decided to buy the property and encompasses the terms of the sale, not the exclusivity of an offer. Lastly, a lease agreement pertains to the rental of property and does not involve the sale or exclusivity of a sale price. Therefore, the option contract is the correct choice as it aligns perfectly with the requirement of securing a specific offer for a designated period.