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An option agreement often serves two main purposes: to keep the owner from selling the property to someone else during the term of the option, and. to lock in a purchase price.
The right for a tenant under a lease to require its landlord to grant a new lease for a specified option term after the expiry of its existing lease.
An Option to Renew clause allows a contract to be extended beyond its original term under specified conditions, typically at the discretion of one or both parties. It typically outlines the process for renewal, including notification requirements and any changes to terms or pricing.
Typically, a tenant is required to give written notice of their exercise of the option several months before the current term of the lease expires typically a period of time ending three to six months before expiration of the current term of occupancy.
If a tenant intends to stay on in the premises, failing to exercise the option to renew can be catastrophic. If the procedure for exercising the option is not followed properly, then the landlord is under no obligation to grant the new lease. This means that the landlord does not have to grant a further term.
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People also ask

Ground leases are used in commercial real estate. The real estate developer leases the land from the tenant for a period of up to 99 years. The developer makes improvements and at the end of the lease term, the improvements become property of the landowner.
Referred to as renewal options or option to renew clauses, these contractual provisions confer the right upon one or both parties to extend or renew the terms of an existing agreement upon its expiration.
Many leases will allow you to make minor changes, but major alterations will likely concern your landlords. Theres good reason for it, too. Extensive alterations run the risk of: Impacting future rentability.

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