California Real Estate Practice Exam

Which of the following actions by the Assignee (Mr. C) would result in the option being valid?

1. Requesting the option without permission

2. Paying all cash for the property on May 7

3. Declaring the option void after the original buyer sold it

4. Proposing a purchase date beyond the 60-day option period

The correct answer is: Requesting the option without permission

The action that would result in the option being valid involves Mr. C requesting the option without permission. In real estate, options are contractual agreements that give a potential buyer the exclusive right to purchase a property within a specified timeframe. When an assignee (in this case, Mr. C) requests the option, such an action can still be valid provided the original option was transferable and the assignee adheres to any relevant terms of the agreement. In this context, the option remains valid as long as it meets the conditions laid out in the initial contract. The assignment of the option to Mr. C does not necessarily render it invalid; rather, it continues to be operative as long as all parties involved acknowledge and accept the transfer. The other options involve actions that either do not adhere to the stipulations of the original option agreement or contradict its requirements. For instance, paying all cash for the property on May 7 would be valid only if it aligns with the timing and terms set in the option agreement, which may not be the case here. Declaring the option void after the original buyer sold it undermines the essence of the assignment and essentially voids any legitimacy the option might have held. Lastly, proposing a purchase date beyond the specified 60