Lease Options

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What Is a Lease Option?

A lease option is an agreement within a lease that after a fixed period of time, often 12 to 24 months, the tenant may opt to purchase the property. If the option is exercised, a portion of the rent will be applied to the down payment on the property. The purchase price of the property should be specified when signing the lease option.

Can a Lease Option Be Transferred or Sold to Another Person?

The lease option agreement usually restricts any right to transfer or sell the lease option to another person. The ability to transfer or sell the lease option can be negotiated before signing the lease option. Thus, if a tenant wishes to have the option to transfer or assign the lease option, they should attempt to obtain it during negotiations.

What Are the Benefits of a Lease Option?

A lease option agreement has benefits for both the buyer and seller: 

Do I Need a Lawyer If I Want to Enter into a Lease Option?

Lease options can be quite complicated. A real estate attorney can guide you through the process of buying or selling your home, and can help you negotiate favorable terms in the lease option agreement.

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Last Modified: 08-26-2014 11:20 AM PDT

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