lease option

Future purchase agreement

A lease option is a contract allowing a renter to purchase the property they're leasing, typically at a predetermined price, within a specified time period.

Part of the rent usually goes toward the eventual purchase.

The arrangement benefits buyers who need time to improve credit or save for a down payment: They signed a lease option on the house, hoping to buy within two years.

Related

landlord · contract · equity · sweat equity · down payment · mortgage · agreement · property · real estate · real estate investor · fair market value · escrow · negotiation · monthly payment · credit · buyout · deposit · closing

Opposites
ownership commitment

lease optionfull ownership

transaction flexibility

lease optionfirm commitment

Unwavering promise to act

lease purchase · forced sale · eminent domain · month-to-month lease

property disposition

lease optionproperty sale

Transfer of real estate

divestiture · liquidation

Family

lease, option, leases, leased, leasing, lessor, lessee, leasehold, leaseholder

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