What is a lease option?

A lease option is a type of contract used in residential real estate law in Florida. It’s an agreement between a landlord and tenant that gives the tenant the right to purchase the property at a predetermined price for a predetermined time. The tenant pays a non-refundable fee and agrees to make a series of rental payments throughout the option period. The tenant has the right to purchase the property during the option period, but if they do not exercise their option, the rental payments they’ve made are considered rent and the landlord keeps the option fee. Lease options are often used when the tenant is unable to buy the property outright, or when the tenant wants to test out a neighborhood before committing to a purchase. Typically, the tenant will agree to make payments that increase over time, and the landlord will negotiate a purchase price at the end of the option period. It is important to note that a lease option is not a lease purchase and does not guarantee that the tenant will purchase the property.

Related FAQs

What is a certificate of title?
What is a deed of trust?
What is the difference between an owner-financed loan and a conventional loan?
What is the difference between a deed and a contract of sale?
What are the different types of home loans available?
What is the difference between a lien and a mortgage?
What is the difference between a Listing Agreement and a Buyer Representation Agreement?
What are the rights of a tenant upon foreclosure?
What is a title insurance policy?
What is a disclosure statement for a landlord-tenant agreement?

What is a lease option?

Related FAQs

Related Blog Posts