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The Option To Lease Agreement is a crucial document in U.S. real estate transactions where a potential tenant needs to secure future leasing rights while maintaining flexibility. It is commonly used when a business needs time to conduct due diligence, secure financing, or complete other preparations before committing to a full lease agreement. The document provides the optionee with exclusive rights to lease the property during the option period, typically in exchange for a fee. This agreement is particularly valuable in commercial real estate transactions where significant due diligence or business planning is required before committing to a lease. It includes specific terms about the property, option period duration, consideration paid, conditions for exercise, and the fundamental terms of the proposed lease that would take effect upon exercise of the option.
