Question

What are the results of an option contract being recorded?

Answer 1

Answer:

A). Equitable interest in the property is created.

Explanation:

An 'Option contract' is described as the contract or agreement in which the offeree is protected against the revocation of the offer by the offerer. Thus, the optionee or buyer creates an 'equitable interest in the property' after an option contract is recorded as in context to real estate, option contract associates to the agreement in which the buyer pays a specific amount to gain the exclusive rights to buy the property and in a specified time, the seller is obligated to not sell that property to any other buyer or revoke the offer while the buyer still has an option to inspect and evaluate the property and decide to buy it or not. Therefore, option A is the correct answer.