What does Lease Option mean?

A legal agreement that gives a tenant the option to purchase the property they are renting at a later date, typically at a predetermined price. The tenant typically pays an option fee and a higher rent, in exchange for the right to purchase the property in the future. This can be a useful option for tenants who want to purchase a property but may not be in a financial position to do so at the current time.

Related Terms

Fully Amortized Adjustable-Rate Mortgage ARM Owner-occupied Property Joint Tenancy Commitment Fee Convertible Adjustable-Rate Mortgage Earnest Money Braced Framing Initial Interest Rate Value/Price Biweekly Mortgage Guarantee Mortgage Escrow Mortgage Qualifying Ratios Aviation Easement Executor Mortgage-Interest Deduction Subcontractor