Contracts
What is a 'lease option' and how does it differ from a standard lease in Nevada?
AA lease option is a standard lease with a shorter term
BA lease option combines a lease with an option to purchase — the tenant-buyer pays rent and option consideration for the right to purchase the property at a set price within a specified period✓ Correct
CA lease option allows the landlord to terminate the lease for any reason
DA lease option only applies to commercial properties in Nevada
Explanation
A lease option (rent-to-own) in Nevada has two components: the lease (tenant pays rent and has right to occupy) and the option (tenant has right — not obligation — to purchase at a specified price within the option period). A portion of rent may be applied toward the purchase price.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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