Employee Lease Agreement With Option To Purchase In Illinois
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Standard in many commercial leases, an 'Option' is a clause in the lease agreement which grants the tenant the ability to renew the tenancy for an additional term or terms.
“When you do a lease option, you're betting that you're going to qualify for a mortgage and be able to execute and buy the property,” says Timothy McFarlin, a California real estate attorney. “Make sure you have a path to do that.”
To give the tenant the option to renew the lease at a pre-set level at the expiration of the term. An option to renew clause is used when the tenant and landlord want to agree in advance to extend the lease at a pre-set level.
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.
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.
In options trading, "to exercise" means to put into effect the right to buy or sell the underlying security that is specified in the options contract. To exercise an option, you simply advise your broker that you wish to exercise the option in your contract.
