Final answer:
The answer to the student's question is B) Contingency, which refers to a provision that requires completion of a certain act before a contract becomes binding. This differs from a restrictive covenant, which limits property use.
Step-by-step explanation:
A provision in an offer to purchase that requires the completion of a certain act before the contract is binding is known as a contingency. Such provisions are critical in real estate contracts, allowing parties to back out under specific conditions.
For example, a home buyer's offer might be contingent on the property passing a thorough inspection or the buyer securing financing. This is not to be confused with a restrictive covenant, which is a provision in a deed limiting the use of the property and imposing certain uses to maintain the quality and value of neighboring properties.