It is also known as a “lease purchase or rent-to-own agreement,” and it is a contract between a landlord (or property owner) and a tenant that allows the tenant to buy the property at the end of the lease period. In a lease option agreement, we typically pay an upfront option fee or consideration, which gives us the right to buy the property at a predetermined price and within a specific time frame. During the lease period, we pay rent and may apply a portion of the rent toward a down payment or the purchase price.