Contracts
In Oregon, what is a 'lease option' agreement?
AA lease that automatically converts to a purchase if the tenant doesn't vacate
BAn agreement where a tenant rents property with the option to purchase it at a specified price within a specified time✓ Correct
CA commercial lease with multiple optional extension periods
DA property management contract with an option to transfer ownership to the manager
Explanation
A lease option (lease with option to purchase) gives a tenant the right — but not the obligation — to purchase the property at a pre-agreed price within a specified time period while leasing it. Option consideration (paid to hold the option) is typically applied toward the purchase price if the option is exercised. Oregon lease options must be carefully drafted to protect both parties.
Related Oregon Contracts Questions
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- Which of the following best describes an option contract in Oregon real estate?
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