Wisconsin Real Estate Sales Practice Exam

Which party is obligated under the WB-24 Option to Purchase?

1. The buyer

2. The seller

3. Both parties

4. No one

The correct answer is: The seller

In the context of the WB-24 Option to Purchase, the seller is the party obligated under the terms of the agreement. In an option to purchase, the seller grants the buyer the exclusive right to buy a property within a specified timeframe and at a predetermined price. This agreement establishes a binding commitment for the seller to adhere to the terms outlined if the buyer chooses to exercise the option. The seller's obligation is to prepare for the potential sale and make the property available according to the terms agreed upon, should the buyer decide to proceed with the purchase within the option period. This creates a legal duty on the seller's part to honor the agreement once the buyer exercises their right to purchase. In contrast, the buyer's role involves the right, but not the obligation, to complete the purchase, while the options indicate that neither party is committed to finalize the sale unless the buyer chooses to exercise their option within the specified timeframe. This core structure distinguishes the seller's responsibilities clearly within the context of this type of agreement.