Which statement best describes a lease option?

A lease option is best described as a rental agreement that includes a purchase clause. This means that the tenant has the option to purchase the property at a specified price at some point during or at the end of the lease term. This arrangement allows tenants to rent the property while also securing the opportunity to buy it later, which can be beneficial for those who may need time to improve their credit or gather funds for a down payment.

In contrast to a standard lease, which typically does not include any purchase provisions, a lease option provides that additional layer of flexibility and potential for the tenant to eventually own the property. Moreover, while a lease with the option to extend may provide for continued rental beyond the original lease term, it does not include an avenue to purchase the property itself. Therefore, the defining characteristic of a lease option lies in its inclusion of a clause that allows for a future purchase, making it an attractive option for potential buyers who are not yet ready to commit to a purchase.