The Real Estate Encyclopedia
What is an option to purchase?
Category - Home Ownership Questions - Lease & Renting FAQ's
Under an option to purchase, the tenant can decide whether or not to exercise the option at a fixed price during the option period. This differs from the right of first refusal in that the option to purchase allows the tenant to exercise the option, even if the property owner has not offered the property for sale.

A key to the difference between a right of first refusal and an option to buy is to identify which party has the right to initiate the sale.
Home Ownership Questions - Lease & Renting FAQ's
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