Some renters with purchase options will borrow the money for a downpayment from a family member, so they can show the bank they have some liquidity. Malo said the option to buy often is used when one family member is buying a home from another. It gives the family member who is buying the home a place to live and time to fix it up to a condition that mortgage lenders will look favorably upon. If the renter decides not to complete the deal, he or she usually loses the security deposit. It also will have a provision setting out what happens if they do not close, so everybody knows going in what will happen.
Sellers sometimes grant extensions.
Sellers also can waive the security deposit, but Emma said that is not the proper way of doing it. Even if we don't have anything available with an option to buy, they can always make an offer. The broker can help advise them on that.