A tenant has been renting a home for two years under a lease-option agreement. The option price was set at $250,000. The tenant now wants to exercise the option. What must the tenant do?
Correct Answer
B) Formally exercise the option within the agreed timeframe and proceed with the purchase at the stated price
To exercise a lease option, the tenant must formally notify the landlord within the timeframe specified in the agreement and proceed to purchase at the pre-agreed price.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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