LEASE OPTION
A legal contract that gives a tenant the choice to buy the property during or after the expiration of the term. During the agreement period, the property owner cannot sell the asset to anyone else. This option is most common in leasing rent-to-own properties.
At the end of the agreement, the lessee should either exercise or forfeit the purchase option. This option is more flexible than a lease-purchase agreement. The lease-purchase agreement, when reached its maturity, requires the renter to purchase the property.
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