What is a lease with an option to buy?

A lease with an option to buy is a type of contract widely used in real estate transactions in Florida. It is an agreement between a landlord (lessor) and a tenant (lessee) that allows the tenant to rent a property for a certain period of time and then purchase the property at a later date at an agreed upon price. The tenant pays a fee known as "option money" to secure the right to purchase the property at a later date. In return, the landlord typically agrees to not rent or sell the property to anyone else until the option period has expired. The tenant has the choice to either purchase the property upon expiration of the option period or simply walk away and forfeit the option money. If the tenant chooses to buy the property, they can do so by taking out a mortgage, paying cash, or through an installment-type contract. Lease with an option to buy provides a less costly and less risky way of allowing tenants to ultimately purchase the property at a predetermined price. This type of contract also provides landlords with additional security. As the landlord retains the option money, they have added protection in case the tenant decides not to purchase the property at the end of the term.

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What is a lease with an option to buy?

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