What does a lease option allow a tenant to do?

A lease option provides a tenant with the ability to rent a property while also having the option to purchase it later. This arrangement typically involves two components: the lease agreement, which outlines the terms of renting the property, and the option to buy, which grants the tenant the right, but not the obligation, to purchase the property at a pre-determined price within a specified time frame. This structure is especially beneficial for tenants who may want to secure a property before committing to a purchase, allowing them to evaluate the property and the surrounding area while still having the opportunity to buy it later.

The other options present different scenarios that do not accurately describe a lease option. For instance, the notion of renting for an indefinite period does not capture the contingent nature of a lease option regarding the future purchase. Similarly, while the option to negotiate rent costs with the landlord is a typical lease feature, it does not relate to the unique aspect of having a purchase option. Therefore, the correct understanding of a lease option is encapsulated in the ability it provides for tenants to rent a property with the possibility of buying it later.