What Is A Lease Option Agreement

But the rental options are worth knowing, because: The terms of the lease-purchase agreement are negotiable, but again, the typical term is usually 1-3 years. 6. An investor can buy a troubled property with a rental option and make improvements to the property. Then the investor can sell the option to a buyer who is willing to pay the new market value for a profit. This is a common financial technique among investors. However, it is riskier than other methods that the investor might use to control the property. Risks include the seller`s inability to transfer clear ownership when the investor attempts to exercise the option. In this case, the investor has made improvements (sometimes substantial) to a property they don`t own and might not be able to acquire. . . .

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