Definition

A lease option (more formally Lease With the Option to Purchase) is a type of contract used in both residential and commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property.

Top Notch Realty LLC will simply lease the property for a reasonable monthly payment from the owners and “PAY” a nonrefundable fee to have the option to purchase the home at a predetermined price during or before the lease term ends. If we decide not to buy the property, it will be turned back over into the custody of the homeowners at the end of the lease term. The homeowners keep the option fee as profit.