What is a lease option agreement?

A lease option agreement is a legal contract that outlines the terms of an arrangement between a property owner, or lessor, and a tenant, or lessee. The lessee has the option to purchase the property at a predetermined price within a specific timeframe. In Washington, lease option agreements are governed by the state’s Residential Landlord-Tenant Act, which defines the rights and responsibilities of both the lessor and the lessee. The agreement must be in writing, signed by both parties, and provide detailed information regarding the terms of the lease option. This includes the length of the lease and purchase option, the purchase price, whether the lease payments may be applied to the purchase price and any additional fees or charges that may be imposed. The lessee may also negotiate conditions with the lessor such as the requirement of a security deposit, the landlord’s right to inspect the premises, and other clauses that protect both parties. If the lessee chooses not to purchase the property at the end of the lease option, the agreement terminates and the lessor is legally obligated to return all payments made by the lessee, with interest. The lessor may also choose to extend the option or terminate the agreement as outlined in the contract.

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What is a lease option agreement?

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