Definition, Meaning & Synonyms

lease-with-option-to-buy

noun

/liːs wɪð ˈɒpʃən tə baɪ/

Definition

A lease agreement that gives the tenant the right to purchase the property at the end of the lease term, usually at a predetermined price.

Examples

They signed a lease-with-option-to-buy agreement for the house.
The lease-with-option-to-buy setup allowed them to test the property before committing to buy.
Many first-time homebuyers consider a lease-with-option-to-buy as a viable way to enter the market.

Meaning

It allows individuals to rent a property with the opportunity to buy it later, offering flexibility and potential for homeownership without immediate full payment.