If you are workingtoward selling or buying a home and want to use lease option houses, then youwant to become familiar with the terminology. This will make the transaction easier while allowing you to get into thehome that you desire with the obligations that fit your personal needs.  Understanding what is available can provideyou with the right options to move into your home with the lease to own homeobligation. 

Call Option:  There are some lease option houses that areobligatory to buy after the rental date. All others come with the option of buying the home after a specific timeframe.  The call option is used when youwant to buy the house before the rental agreement contract is through.  This means that you have the right and notthe obligation to buy the home before the lease is finished. 

Strike / Exercise Price:  The strike price is the overall price thatyou will buy a home at.  The lease optionhomes are available with a general alternative of how much the home is worthand how much you can buy it for.  Thestrike price, also called the exercise price, is the amount that you can buythe home for with a complete purchase.  Ifyou don’t like the exercise price, then you can negotiate or try to find adifferent home. 

Expiry Date:  If you are living in lease option houses orlooking at some of the options available, then you want to keep the expiry datein mind.  After the expiry date, you canno longer lease or rent the property and will have to buy the home.  If the expiry date is being used while thehome is up for lease or purchase, then you will have the option to buy untilthe expiry date, then the home will immediately move into a leaseagreement.  With this option, you willwant to find the home quickly and set your price before it goes into a leaseonly option.