- A written agreement between a property owner and a tenant that allows the tenant to use a property in exchange for rent, but it also gives the tenant the option to buy the property for a certain price within a specified time period.
Related Terms and Acronyms
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Lease Extension — Definition,
- The continuation of an existing lease, at the original monthly payment, usually on a month-by-month basis.
- Negative-equity Financing — Definition,
- Financing for new car buyers who owe more on their trade-in than the car is worth.
- Option — Definition,
- A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
- Purchase Option — Definition,
- An agreement where a portion of monthly rent can be credited toward the purchase of a property.
- The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
- Right of First Refusal — Definition,
- An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.
- Step Down Lease — Definition,
- A lease providing for decreases in rental payment at specified dates.
- Step Up Lease — Definition,
- A lease providing for increases in rental payment at specified dates.