Certified General Appraiser Practice Exam

A purchase option in a lease is a provision that gives tenants the right, but not the obligation, to buy the leased property at a predetermined price within a specified timeframe. This characteristic is particularly attractive to tenants who may want the flexibility to own the property in the future while enjoying the benefits of leasing in the present. By having a set price, the tenant can plan financially and assess whether purchasing the property is a viable option when the time comes. This feature allows tenants to lock in a purchase price, potentially shielding them from market fluctuations.

The other choices do not pertain to the nature of a purchase option. For example, guaranteeing a long-term lease relates more to lease duration rather than the purchase intention, while immediate eviction for late payments involves lease default terms, not purchase rights. Similarly, the removal of a security deposit aligns more with lease agreements rather than a purchase option, which focuses specifically on the potential sale of the property.