Residential and commercial real estate leases often have an Option to Purchase clause that allows the tenant to exercise an “option to purchase” the property at a certain time during the lease. Options to purchase can be complicated and carry with them strict requirements, that may have a deadline and a written notice term.  That is, if the tenant wants to exercise the option to purchase the property, they must do so, in writing and at a certain time BEFORE the lease expires, or lose their right to purchase.

It is often a smart idea to lock in the price of the property prior to entering into the lease so that if the property appreciates, the buyer is protected and knows the terms of purchase.  This may or may not benefit the landlord/owner unless property values decline.  There is a way to structure the Option to Purchase in a manner that is tenant friendly or landlord friendly, depending on which side you are on.

With over 20 years of real estate and litigation experience, attorney Jacqueline A. Salcines, Esq. brings her contract, landlord tenant and real estate experience to all her clients. Whether you need assistance drafting the lease or interpreting it, we are here to help.

The first consultation is always free of charge.



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