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hi Im chip Waller Im often asked about owner financing or a lease with an option to purchase well what is the lease the option with an option to purchase well we start with police which means youll enter into a lease or a landlord-tenant relationship or in the the tenant is taking occupancy of the property and agrees to pay a certain monthly amount per month to move into the property for a specified period of time the option is a an agreement by the seller that locks in the purchase price that allows the buyer to buy the property during the term of the lease for a fixed amount of money depending on the negotiations between the landlord and the tenant a certain amount of the monthly rental payments can apply to the purchase price this is usually negotiated and Ill be happy to discuss with a landlord or a tenant as to how much of the monthly rental should apply to the option price but it is the buyers option to purchase that is a right and not these sellers occasionally Ill to hear