Final answer:
A clause in some lease agreements allowing tenants a chance to purchase the property before others is known as a right of first refusal. Ownership of the property enables the creation of such contracts, and the lease includes specific terms for possession and termination.
Step-by-step explanation:
Some residential lease agreements include an option that allows tenants the possibility to purchase the property before it can be sold to someone else.
This is often referred to as a right of first refusal which is a clause in the lease agreement allowing the tenant to buy the property under specified conditions before the owner can sell it to another party.
Such a clause ensures that the tenant has the priority to purchase the property and requires the property owner to offer it to the tenant before making it available on the open market.
Ownership of the property is a prerequisite for the right of first refusal, as the current owner has the authority to enter into contracts involving the property, including an agreement to sell.
During possession, if the owner cannot deliver possession on the agreed date for any reason, either party can terminate the agreement. The termination clause details how and when the lease can be ended by either the resident or the owner, with provisions for how the property must be vacated.