Purchasing a House Is a Somewhat Complicated Process

question 14

Multiple Choice

Purchasing a house is a somewhat complicated process. Typically, if the buyer's offer is accepted by the seller, the transaction will not be completed or "closed" for several weeks. During this time the buyer may gather more information about the house or research other houses in the area. Some home purchase contracts include an option fee. The buyer may pay the seller a few hundred dollars for the right to walk away from the contract prior to closing for any reason. This option fee is best described as:

• A) the option to defer investment.
• B) the option to make follow-on investments.
• C) the option to change operations.
• D) a put option on the house.

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Definitions:

Quebec

A province in Canada known for its unique French heritage, language, and culture within a predominantly English-speaking country.

Province

An administrative division within a country, often having its own local government.

Constitution Amendment

A modification or change to a constitution, which is the foundational legal document of a country governing its laws and principles.

Ownership of Property

The legal right to possess, use, and dispose of assets or properties.