A lease paired with a time-limited right—usually not a duty—to buy.
The lease and option
The rental lease governs occupancy; the option governs the potential purchase. Review how to exercise the option, notices, the purchase price, and whether a lease default affects purchase rights.
Option fee and credits
Option consideration pays for the purchase right and may be nonrefundable. Rent credits exist only when the written agreement creates them and explains their use.
Before signing
Check title, liens, taxes, condition, repair duties, price method, financing timeline, and consequences of not buying. Independent legal and financial review can be especially valuable.
Questions to bring to a professional
- Is buying optional or required, and exactly how is that stated?
- What cash is refundable, credited, or at risk?
- Which payment amount excludes taxes, insurance, fees, or maintenance?
- What title search, inspection, appraisal, recording, or disclosure steps apply?
- What happens after default, a missed deadline, or inability to refinance?
Important: No universal credit score, down payment, interest rate, or approval rule applies. Do not rely on an example as an offer.