Explanation: An option is a contract in which a property owner (the optionor) grants a potential buyer (the optionee) the exclusive right to purchase a property within a specific period. For this to be a legally binding and valid contract, all of the essential terms and conditions of the future sale, such as the purchase price, must be clearly stated. This makes the option a complete and enforceable contract on its own. The potential buyer is the optionee who receives the right to purchase, while the seller is the optionor who grants that right. The consideration paid for the option is typically a fee that is not refundable and is not automatically applied toward the purchase price.

Explanation: A real estate licensee must advise clients to get a radon inspection because radon is a known health hazard. It's a naturally occurring, radioactive gas that can accumulate in homes and is a leading cause of lung cancer, second only to smoking. A is incorrect because a licensee cannot guarantee that an area is free of radon. B is also incorrect because radon exposure is a risk for everyone, regardless of their smoking habits. D is incorrect because radon is an odorless, colorless gas, making it impossible to detect without specialized testing equipment. A licensee's duty is to recommend due diligence to protect the client, and a radon test is a crucial part of that process.

Explanation: The Housing for Older Persons Act (HOPA) of 1995 provides an exemption from the Familial Status provisions of the Fair Housing Act, allowing certain housing communities to cater specifically to seniors. A key requirement for this exemption is that at least 80% of the occupied units must be occupied by at least one person who is 55 years of age or older. A is incorrect because HOPA does not create exemptions for family members living with seniors; rather, it sets the criteria for the community as a whole. C is incorrect because HOPA does not mandate specific facilities or services; it only addresses the age of the residents. D is incorrect as the Act does not concern the awarding of damages for a mistaken belief about an exemption.

Explanation: A contractual obligation is not created until there is mutual agreement between both the seller and the buyer. The scenario describes an offer made by the buyer, which includes a specific condition (the garage being finished). An offer, by itself, does not create a binding contract. A contract is formed only when the seller accepts the offer. In this case, the seller has not yet accepted the offer, so there is no legally binding obligation. D is incorrect because while most real estate contracts must be in writing, notarization is generally not a requirement for the validity of a real estate purchase agreement.

Explanation: The cabinet is considered a fixture because it was custom-built to fit a specific space in the home, which indicates an intention for it to become a permanent part of the real estate. While a freestanding cabinet would typically be considered personal property, the act of custom-building it for an alcove demonstrates a degree of attachment or adaptation that converts it from personal property to a fixture, which is then transferred with the sale of the real property unless specifically excluded in the contract. Real property is the land and anything permanently attached to it, but a fixture is a separate category of item that was once personal property. An appurtenance is a right or privilege that runs with the land, such as an easement, not a physical object like a cabinet.