L/O option for owner

When offering a lease option, do you as the owner/seller have the option to cancel or withdraw the option? In other words, say you go into a deal with the intent of l/o in a year, but decide later, “hey, I want to keep this as a rental and build my portfolio instead of selling”, is there a seller option written in that allows you to withdraw the option to sell? If so, what does it say?

This is not typical for a lease option contract. Remember you are giving the t/b the option to purchase your property in return for consideration ($). If you want an out clause that will let you cancel this option or purchase it back from the t/b then you will have to insert specific language into your lease option contract. Remember, the majority of lease options are never exercised.

If you don’t want them to exercise the best way is to convince them to buy a bigger house instead. Another local investor here does that by offering to contribute the equity they’ve built up in the L/O house to the new house they’ll buy. It doesn’t hurt that his wife is also a realtor, so they can use her commission in the process. As a result he still has most of his portfolio intact.