Unilateral contract: only the optionor is bound until exercise
Before you read
Test yourself first: 5 questions
Question 1 of 5
The owner of a single family home sells it himself, without an agent or discriminatory advertising, and refuses to sell to a buyer because of her religion. Under federal law this is:
Answer: B. The Fair Housing Act's FSBO exemption (owner of ≤3 single-family homes, no agent, no discriminatory ads) can cover religion-based refusal — distasteful but exempt. RACE would never be exempt (1866 Act). Many states remove these exemptions — federal question, federal answer.
Question 2 of 5
A 55+ community meeting HOPA requirements refuses to rent to a couple with a 10-year-old. This refusal is:
Answer: B. Qualified HOPA senior housing (62+ all residents, or 55+ with the 80% rule and published policies) is EXEMPT from familial-status protection — the one lawful 'no kids' housing.
Question 3 of 5
A lender refuses to make loans in a particular neighborhood based on its racial composition. This practice is called:
Answer: C. Redlining is the illegal refusal to lend (or to lend on equal terms) in certain areas based on the protected characteristics of residents.
Question 4 of 5
Which of the following dwellings is generally covered by the Fair Housing Act?
Answer: A. A large privately owned apartment building managed by a broker is fully covered; the other options describe situations that may qualify for exemptions.
Question 5 of 5
A landlord tells a prospective tenant using a wheelchair that the building has no accessible units and refuses to discuss any changes. The landlord's flat refusal most directly violates the tenant's right to request a:
Answer: B. A landlord must permit a disabled tenant to make reasonable modifications (at the tenant's expense) needed for full use of the dwelling; refusing even to consider this violates the Fair Housing Act.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Option: seller (optionor) MUST sell if buyer (optionee) exercises; buyer may walk
- Option needs its own consideration — usually non-refundable
- Unilateral contract: only the optionor is bound until exercise
- Right of first refusal: match any bona fide offer BEFORE the owner can sell to others
- Lease-option: lease + option to buy; rent credits are negotiable
Options & Rights of First Refusal: FAQs
Is Options & Rights of First Refusal on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
