What is a lease with an option to buy?

A lease with an option to buy is a rental agreement between a landlord and a tenant in which the tenant has the right to purchase the property at the end of the lease term. The tenant agrees to pay rent to the landlord and, in exchange, the landlord agrees to give the tenant the right to buy the property. In California, a lease with an option to buy gives the tenant the right to buy the property at any time during the lease period or at the end of the lease period, at a predetermined price set in the lease agreement. The tenant pays an option fee to the landlord, which the landlord keeps regardless of whether the tenant decides to purchase the property. The tenant also pays a higher rent than the market rate to account for the option to buy. This agreement allows the tenant to occupy the property and get to know the neighborhood before committing to a purchase. It is important for both parties to have a clear understanding of the agreement and consult with a lawyer to make sure it is legally binding and addresses all the necessary details.

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What is a lease with an option to buy?

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