Lease Option Agreement

A lease option contract is a hybrid agreement that combines a lease with the option to purchase the leased property at a later date. It includes two key components:

• Lease Agreement: Outlines the terms for renting the property, such as monthly rent, lease duration, and maintenance responsibilities.

• Option to Purchase: Grants the tenant the exclusive right, but not the obligation, to buy the property within a specified timeframe and at a pre-agreed price.

This type of contract is often used by tenants who want to test living in a property before committing to purchase or by sellers seeking to attract buyers while generating rental income. It provides flexibility for both parties while defining clear terms for the potential sale.