Lease With Option To Purchase

Definition of "Lease with option to purchase"

Provision in a lease agreement in which the lessee is given the right to buy the property at the end of lease term. In many cases, the option price is attractive to encourage acquisition. For example, a tenant may enter into a five-year lease or an apartment with the option to buy it when the lease expires for a predetermined price.

Search Real Estate Glossary

Related Real Estate Glossary terms

Normal Annuity Form

Cost computation form that assumes retirement and commencement of annuity payments on the first day ...

Materialman's Lien

Legal lien on property on behalf of an individual who has not been paid for material furnished in co ...

Retaliatory Eviction

The tenant is forced to leave the premises if he complains about the poor condition of the apartmen ...

Junior Mortgage

Mortgage placed on a property after a previous mortgage. It can be a second, third, etc. mortgage. A ...

Single Interest Policy

Property insurance coverage for only one of the parties having an insurable interest in that propert ...

Paramedical Examination

Medical check of an applicant for life or health insurance by a medical professional who is not a ph ...

Related Real Estate FAQ

What Do I Need To Know About Term Life Insurance?

Provides financial protection for a limited, specified period of time, at a lower cost than permanen ...

What Is A Subdivision?

A subdivision is a piece of land divided into several plots in which homes are built. ...

What Are Basis Points?

Basic points relates to changes in the interest rate for your home. ...

What Is A Lien?

A lien is a claim against a property. ...

What Is An Adjustable-rate Mortgage (ARM)?

A type of mortgage in which the interest rate is keyed to a certain economic index and is adjusted a ...

What Is A Credit Report?

A credit report is a report of all your debt information compiled by an independent agency. The cred ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

3 tips to ensure your sale goes through What is Hazard Insurance? Foreclosure - The Pros and Cons of Buying What is the Best Time of Year to Buy a Home? 5 signs of house foundation problems

FAQ

What is a closing? What is a REALTOR®? When Should I Get Travel Insurance? What is a Good Faith Estimate? What are my coverage options?