What is a lease option agreement?

A lease option agreement is a type of real estate contract commonly used in Florida. This legal agreement allows a tenant to rent a property from a landlord and then have the right to purchase the property at a later date. In a lease option agreement, the tenant pays the landlord an option fee at the start of the contract. This fee gives the tenant the right to purchase the house at an agreed upon price during the lease term. The tenant is then obligated to pay rent on the house during the lease period. Along with the rent payments, the tenant may also be required to pay a portion of the property taxes and insurance. Once the lease term ends, the tenant can either purchase the property, exercise their option, or pass on the option. If the tenant chooses to buy the property, the landlord is typically allowed to keep the option fee as an extra payment. If the tenant chooses not to exercise the option, the landlord keeps the option fee and the tenant moves out as per the lease terms. Lease option agreements are commonly used in Florida due to the popularity of rental properties. The agreement is a great way to give tenants the opportunity to purchase a house without having to secure a traditional loan. It also gives landlords the security of knowing that their tenants are likely to purchase the property when the lease expires, thus ensuring that their investment is likely to pay off.

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What is a lease option agreement?

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