In real estate, a Lease Purchase Option is a lease agreement that gives the tenant the right to purchase the leased property under specified terms and conditions. The option is usually exercisable within a certain time period or at the end of the lease term.
This arrangement allows the tenant to occupy the property while deciding whether to buy it, and sometimes a portion of the rent may be credited toward the purchase price. A lease purchase option does not obligate the tenant to buy, but it obligates the owner to sell if the option is properly exercised.
