When is a lease option typically executed?

A lease option is typically executed at the beginning of the rental period. This timing is crucial because it allows the tenant the right to purchase the property while they are already occupying it as a renter. By having the lease option established at the start of the rental period, the tenant can enjoy the benefits of living in the property and potentially decide to buy it based on their experience during the rental phase.

This arrangement provides clarity for both parties, as the terms of the option to purchase are laid out right from the beginning. It allows the tenant to lock in the purchase terms while starting to pay rent, thus creating a straightforward path toward home ownership if they choose to exercise the option later on. It also differentiates the lease option from other processes that might occur later in the rental agreement or during sales negotiations, emphasizing its role in the initial phase of the leasing process.