Lessor - Owner or Landlord
Lessee - Renter or Tenant
Optionor - gives the option
Optionee - pays for the option, and receives the option
What the Landlord - Owner - Optionor Wants or Needs - long term tenancy, clean tenant, quiet tenant, pays promptly, saves money to buy the house
What the Optionee - Tenant Buyer Wants or Needs -
- wants to stop renting,
- get ahead financially,
- not be evicted,
- have a nice home to live in
Option Consideration - non-refundable “money and-or services” that allow you to “exercise your option”.
Exercise Option - You choose to use your option before the option expires.
Option Credit - this increases your “Option Fund” when you exercise your option.
Building “Equity Fund” - Every month you can increase your fund so when you stop renting and get your home loan, this fund is at a maximum.