The Lease Option:

Buyer pays the seller option money for the right to later purchase the property.

Buyer and Seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the option.

The term of the option agreement is negotiable, but the common length is generally from one year to five years.

Option money is rarely refundable.

No body else can buy the property during the option period.