Real Estate Glossary

What's a Lease-purchase Option?

A lease-purchase option is an agreement where the buyer rents the property for a while before deciding to buy it. The buyer must pay a fee to the seller, which prioritizes them for purchasing the house later on.

Moreover, a lease term is established, and once it ends, the buyer must pay the entire previously agreed price. If this doesn't happen, the buyer may lose all the privilege of buying the property later on, and it can be sold to a different person.

However, the buyer must still pay for taxes and maintenance costs, and the rent is probably going to be higher than usual to cover future expenses.