What is a "lease option"?

A lease option is an agreement that provides a tenant the opportunity to lease a property while also granting them the option to purchase it at a later date. This arrangement typically includes specific terms regarding the purchase price and the time frame in which the tenant can exercise the option to buy the property. The primary benefit of a lease option is that it allows tenants to live in a property and potentially buy it, potentially alleviating the pressure of having to secure financing or make an immediate purchase. It's a way for renters to transition into homeownership while also providing property owners with the possibility of selling the property in the future.

The other options do not accurately describe a lease option; they address different types of agreements or arrangements that do not involve the potential for future property purchase.