Real Estate Exam [California] 39, Options, Lease Options, and Promissory Notes

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:
- An option is a unilateral contract binding only the seller, while a purchase agreement is a bilateral contract binding both parties.
- A Right of First Refusal allows a holder to match a third-party offer, whereas an option grants the right to buy at a predetermined price.
- The promissory note serves as evidence of the debt (the IOU), while the deed of trust secures the debt to the physical property.
- In seller carryback financing, the property's seller also acts as the lender for the buyer.
- Arranging loans with multiple investors or selling shares in notes can trigger securities laws, a major exam red flag requiring a different license.

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