Could a Lease-Option Trigger the Due on Sale Clause?

Why lenders might see your tenant-buyer as a “transfer of interest.”

Let’s talk about lease-options for a minute.

You know the play:

• You give a tenant the option to buy the property later.

• They pay an option fee.

• Maybe a little premium on rent.

• Everyone’s happy.

But here’s the problem no one wants to talk about:

A lender’s attorney could look at that lease-option agreement and argue… that you’ve effectively transferred an inter…