What is a Lease Option?

A Lease Option is a type of Rent To Own where you have a lease agreement or a rental agreement and an option agreement. The lease, just like in a Lease Purchase, describes the terms of the rental. The option agreement gives you the right-but not the obligation-to buy the property for some agreed upon time in the future. In other words, with a Lease Option, you are renting the property and you have the option to, but are not required to, buy the property in the future.

With a Lease Option, it is usually clear that you can buy the property if you want or if you prefer not to buy you are not obligated to do so. In either case, the amount of money that you paid to get the option to be able to buy the property (usually called Option Fee) is non-refundable. That means if you don’t buy, you don’t get it back.

Rent To Own FAQs

Rent To Own, Lease Option, Lease Purchase

Option Fee