Elements of Real Estate Lease Agreements

Many leases provide an option for the tenant to renew the lease prior to the end of the lease period. With the proper notice, the tenant can renew for another pre-agreed period. An example clause might read: "Any time up to thirty days prior to the expiration of this lease, the tenant can elect to extend the lease another six months by written notice to the landlord. The rental amount will be $xxx.xx per month for the new lease term."

Another option is the one to purchase the property during the lease period. Generally, the purchase price is stated and the landlord may or may not apply some of the rental payments to the down payment or purchase price.