Lease purchase option

A lease purchase option is an arrangement where a tenant rents a property with the agreement that they have the option to buy it later. Part of the rent may go toward the eventual purchase price, and the tenant usually pays an upfront fee or premium for this right. This setup allows the tenant to test the property and decide to buy within a specified period, providing flexibility and time to secure financing or confirm their interest in owning the property. It benefits both parties by creating a pathway to ownership while maintaining rental flexibility.