What is a Lease Option Agreement?
A lease option agreement in property transaction is a legally binding contract between the buyer of the option and the seller of the option.
You can use a lease option to buy a property for example today and pay for that property in the future in the hope that the value of the property will increase.
For example a landowner may grant a developer an option to buy the property or a land on payment of a fee – the option sum. The seller agrees that the buyer will, during the agreed period have the right to exercise an option to buy the property.
If the buyer decides during the option period to buy the property, it must serve an option notice to the seller and pay a deposit. Upon service of the notice, a contract for the sale of the purchase of the property is kick started as per the terms of the option agreement.
If you want us to draft your option agreement, contact us on 02071836547