12 Oct 2025

RES Paper 2 Exam Question

A buyer and seller sign an Option to Purchase (OTP) agreement for a private property. After signing, the seller wishes to cancel the transaction, citing better offers from other buyers. What is the best course of action for the salesperson representing the seller?

a) Advise the seller to honor the OTP, as it is legally binding.

b) Recommend that the seller compensate the buyer to terminate the agreement.

c) Cancel the OTP unilaterally and market the property to other buyers.

d) Delay responding to the buyer until the OTP expires.