What does a lease option allow a tenant to do?

A lease option is a contractual agreement that provides a tenant with the right, but not the obligation, to purchase the leased property at a predetermined price within a specified timeframe. This arrangement is beneficial for tenants who may wish to invest in property but need time to secure financing or assess whether they want to commit to buying the property outright.

In this scenario, the tenant has the flexibility to decide whether to execute the purchase option while living in the property, which can lead to long-term residency and investment in the neighborhood. This option typically reflects the current market conditions and can protect the tenant from future price increases on the property.

The other choices do not accurately describe the characteristics of a lease option. What makes the lease option significant is its focus on giving the tenant the potential pathway to property ownership while fulfilling their leasing needs in the interim.