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.
- rent-to-ownGradual purchase through payments
- purchaseGoods obtained for payment
- right to buyTenant's home purchase privilege
- purchase priceMoney paid for acquisition
- tenantOne who rents property
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
lease optionfull ownership
lease optionfirm commitment
Unwavering promise to act
lease purchase · forced sale · eminent domain · month-to-month lease
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