What is a "lease-option"?

A lease-option is indeed a rental agreement that provides the tenant with the opportunity to purchase the property at a later date. This type of agreement typically allows the tenant to rent the property for a specified period while also giving them the right to buy the property at a predetermined price before the lease expires.

This arrangement is beneficial for individuals who may not be ready to purchase a home immediately due to various reasons such as saving for a down payment or needing time to improve their credit score. It provides them with the chance to lock in a purchase price while living in the home, essentially allowing them to "test drive" the property.

In contrast, other options do not accurately describe a lease-option. For instance, a rental agreement that allows the landlord to end the lease early does not provide any purchase option to the tenant. A lease agreement with multiple tenants refers to shared tenancy arrangements and does not imply any purchase rights. Similarly, an option to renew a rental agreement pertains solely to extending the lease term without any purchasing opportunity and therefore does not fall under the definition of a lease-option.