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Definitions of Lease Option

• Essentially, this is a rental set-up where the renter has an option to purchase the property according to the contractual terms. The Buyer enters into an option agreement to buy the property at a set price and inside a set period of time (Option Period). Money is paid to the Seller in consideration for the option. The Seller may not sell the property to any other party inside the option period. However, the Buyer may or may not exercise their option. If the option expires without a sale, then the property reverts back to the Seller. This definition of Lease Option contributed by e2cpilot.