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In a lease arrangement the deal is structured so that the buyer has the option of buying the property at a predetermined price at the end of the contract period.
Land contract lease option. With a land contract the buyer is building equity during those years. Under a lease option on a home you first execute a lease with the seller landlord. On a land contract the buyer purchases the property at the outset with a balloon payment due to the seller at the end of the contract. With a lease option the tenant has an exclusive right to buy the property during the contract period but doesn t usually build equity.
A land lease option is a clause in a real estate contract that grants the renter or lessee the right but not the obligation to extend his or her use of a property beyond the term specified in the. A lease option or rent to own contract for a home is both a standard lease and an option to purchase the home. The option usually includes a predetermined purchase price and is valid for a specified term such as six months to a year.
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