What is a lease with an option to buy?

A lease with an option to buy is a real estate contract in which a tenant agrees to rent a property for a set amount of time, while also having the option to buy the property before the end of the lease. Leases with an option to buy are a increasingly popular legal arrangement in the state of Alaska. In an Alaska lease with an option to buy, the tenant must pay a non-refundable option fee to the landlord at the beginning of the lease. This fee gives the tenant the option to purchase the property within a specific period of time, while still having the right to rent the property for the duration of the lease period. The tenant is obligated to pay the rent and must maintain the property during the length of the lease. At the end of the lease period, the tenant must either purchase the property or move out. If the tenant chooses to purchase the property, the option fee is applied to the purchase price. If the tenant chooses to move out, the option fee is not refunded. Leases with an option to buy are popular in Alaska due to the abundance of rental property, the potential for the tenant to use their monthly rental payment toward the purchase of the property, and the fact that it allows the tenant more time to decide if buying the property is a sound financial decision.

Related FAQs

What is a tenancy in common?
How is property legally defined?
What are the different types of mortgages?
What is an escheat?
What is a license agreement?
What are real estate taxes?
What is a deed of quitclaim?
What is the difference between a license and an easement?
What is an accession?
What is the Interpleader Statute?

What is a lease with an option to buy?

Related FAQs

Related Blog Posts