Lease With Option To Purchase

Definition of "Lease with option to purchase"

Ken Gettinger real estate agent

Written by

Ken Gettingerelite badge icon

Gettinger Realty Group

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

(1) Short-term loan that is made in anticipation of permanent longer term loans. The interest rate on such a loan is usually higher than on longer term loans. (2) A business loan in which ...

Same as term income statement: Also called profit and loss statement. A financial statement depicting a business entity's operating performance and reports the components of net income, ...

See Board of Equalization. ...

Same as term one-hundred-percent location: Precisely the optimum location for a retail business establishment in an urban central business district (CBD). A one-hundred-percent-location ...

The definition of a testator in real estate is an individual who makes or leaves a valid will detailing how their possessions are to be divided or distributed among their heirs. The ...

Bond collaterized by real assets. Two kinds of mortgage bond are senior mortgages and junior mortgages. A mortgage bond may have a closed-end provision that prevents the firm from issuing ...

Precalculated tables providing the present values of $1 or an annuity of $1 for different time periods and at different discount rates. ...

Also called investment property. Real property held by a business for investment potential or in order to earn income by leasing or letting it, rather than for its own use. ...

Offering price. ...

Popular Real Estate Questions