Definition
An agreement giving a tenant the right, but not the obligation, to purchase the property at a set price during the lease.
Example
The lease option credited $300 of each month's rent toward the eventual purchase price.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Lease Option mean in real estate?
An agreement giving a tenant the right, but not the obligation, to purchase the property at a set price during the lease.
How is Lease Option used in practice?
The lease option credited $300 of each month's rent toward the eventual purchase price.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.