lease option

A lease option, or a lease with the option to purchase, is a type of contract for real property (such as a house) or personal property (such as a car) that gives the lessee the option to buy the property at the end of the lease period. Different from a lease purchase contract, which binds the lessee to buy the property and the lessor to sell the property, a lease option binds the lessor to sell, but gives the lessee option to buy.

[Last reviewed in July of 2020 by the Wex Definitions Team]

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