Question

Which of the following should NOT be considered when determining a fair option fee?A. Cost of a title search B. Tenant's credit rating C. Length of option term D. Local property value appreciation rate

Answer 1

Answer:

A. Cost of a title search

Explanation:

Option B - Tenant's credit rating is a necessary thing when determining a fair option fee. So, it is not the correct answer.

Option C - Without the number of terms, it is difficult to determine a fair option fee. So, it is also incorrect.

Option D is also wrong, as property value is the main element of finding a fair fee.

Therefore, Option A is the answer as, during the determination of a fair option fee, the cost of the title search is not a necessary element.