A purchase option is a contractual right granted to a party (typically a tenant) that gives them the opportunity, but not the obligation, to buy an asset or property at a specified price within a set period.
Redeemable rent refers to a lease arrangement where the rent paid can be applied toward the purchase price of the property. This type of arrangement is often seen in lease-to-own agreements, offering tenants the possibility of becoming property owners.
A Rolling Option provides the right to extend the term of a purchase option by offering some form of compensation. The option holder can delay purchasing the property under specified terms.
