### What does a lease option provide to a tenant at the end of the lease period? - [x] The right to purchase the property - [ ] The obligation to renew the lease - [ ] A refund of all rent paid - [ ] The option to lease a different property from the same landlord > **Explanation:** A lease option gives a tenant the right to purchase the property at the end of the lease, with terms typically negotiated before the lease is signed. This option provides flexibility and the possibility for tenants to become homeowners. ### Who determines the purchase price in a lease option agreement? - [x] It is generally negotiated before the lease is signed - [ ] The market price at the end of the lease period - [ ] The landlord decides it unilaterally at the end of the lease - [ ] A real estate agent decides for both parties > **Explanation:** In a lease option agreement, the purchase price is typically negotiated and agreed upon before the lease is signed. This foreknowledge helps both the tenant and landlord plan their financial futures. ### What happens if the tenant does not exercise the option to buy? - [ ] The tenant is refunded the rental payments - [x] The landlord may lease the property to someone else - [ ] The tenant is legally obligated to buy the property - [ ] The property remains unsold indefinitely > **Explanation:** If the tenant does not exercise the option to buy the property, the landlord is free to lease the property to another tenant. The new tenant may also be given the option to purchase the property after leasing it. ### What are the advantages for a tenant in a lease option agreement? - [x] Time to live in the property before deciding to buy and ability to save money - [ ] No financial obligations during the lease period - [ ] Automatic ownership transfer after the lease - [ ] Immediate loan qualification required before signing the lease > **Explanation:** Leasing before buying gives the tenant time to live in the property to make a more informed decision about purchasing it. Additionally, it provides an opportunity to save money to qualify for a loan to buy the property. ### How does a landlord benefit from a lease option arrangement? - [x] Earning rental income before selling the property - [ ] Immediate appreciation in property value - [ ] Guaranteed sale after the lease period - [ ] Obligation-free change of tenants anytime > **Explanation:** The landlord benefits by earning rental income while the tenant decides whether to buy the property, providing financial stability and potentially helping the landlord secure a loan for his next property. ### Can the negotiated purchase price in a lease option agreement change? - [ ] Yes, it fluctuates with the market - [ ] No, it stays the same regardless of any agreement - [x] No, it is typically agreed upon before the lease is signed - [ ] Yes, the landlord can change it at will > **Explanation:** The purchase price in a lease option agreement is typically negotiated and fixed before the lease is signed. This ensures that both parties have a clear understanding of the financial terms involved. ### What happens to the purchase option if a new tenant leases the property? - [x] The new tenant may be given the option to purchase after leasing - [ ] The purchase option expires forever - [ ] The landlord loses the property immediately - [ ] The original tenant still has the right to purchase > **Explanation:** The new tenant may be granted the same option to purchase the property after leasing it if the initial tenant does not exercise their option to buy, continuing the cycle of potential purchase options. ### What allows the tenant to decide to buy or not buy the property? - [ ] A mandatory purchase contract - [ ] The landlord's discretion alone - [x] The purchase window negotiated before signing the lease - [ ] Availability of a market loan > **Explanation:** The purchase window, which is negotiated before signing the lease, gives the tenant a specific period during which they can decide whether to exercise the option to buy the property. ### What’s another term frequently used for "lease option"? - [ ] Permanent lease - [x] Rent-to-own - [ ] Fixed rental agreement - [ ] Instant buy lease > **Explanation:** A lease option is commonly referred to as a "rent-to-own" agreement because it allows tenants to rent a property with the option to purchase it later, providing a pathway from renting to owning.