Maria grants a prospective buyer the right, but not the obligation, to purchase a parcel...

The correct answer is C, Option contract. An option gives the optionee the contractual right to purchase under predetermined terms during a specified period without initially obligating the optionee to complete the purchase.

The optionor—the property owner—agrees to keep the opportunity available in accordance with the option ' s terms. If the optionee timely and properly exercises the option, the relationship can mature into a binding purchase obligation according to the contract.

A right of first refusal operates differently. It generally gives the holder an opportunity to match or accept terms when the owner decides to sell to another party rather than guaranteeing the holder an unconditional right to purchase during a fixed period.

An installment land contract involves a sale in which the purchaser makes payments over time while legal title is typically retained until specified conditions are satisfied. A purchase-money mortgage is a financing device.

Massachusetts Board contract curriculum expressly identifies options as a separate category of real-estate contract.

Study Guide Reference: Contracts — options, rights of first refusal and real-estate purchase arrangements.