In which scenario is a "lease-option" agreement typically utilized?

A "lease-option" agreement is commonly utilized in scenarios where a tenant has the opportunity to purchase the property at a later date. This type of agreement combines a lease with an option to buy, allowing the tenant to rent the property with the potential to buy it after a specified period. It provides the tenant with the flexibility to live in the property while deciding whether they want to make a long-term commitment to purchase it.

This arrangement can be beneficial for both parties: the seller can secure a tenant and maintain income from rent while potentially selling the property later on, and the tenant can secure the right to buy at a predetermined price, often benefiting from any increase in property value during the lease term.

The other scenarios do not align with the purpose of a lease-option agreement. For instance, if a seller wishes to retain ownership indefinitely, a lease-option would not serve that goal since it gives the tenant a potential pathway to ownership. Similarly, if a property is undergoing major renovations, a lease-option may not be established until it is ready for occupation. Lastly, a buyer preferring to rent without a purchase option does not need a lease-option agreement, as that arrangement solely focuses on rental rather than the potential for eventual ownership.