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When selling a house as a lease option, is
the option fee, or any portion of it,
Required to be applied toward the purchase
price of the property or a down payment
towards the property when opening escrow? If
it is required, where can I find the actual
law or regulation that says so?
Asked on April 7, 2016 under Real Estate Law, California
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
There is no general rule about the application or use of the option fee. This is purely a contractual matter, and it is simply a matter of what the two parties decide between themselves, agree to, and put in the contract.