Lease Term Option Term Clause Samples

The 'Lease Term; Option Term' clause defines the duration of the initial lease period and outlines any options the tenant may have to extend the lease for additional terms. Typically, this clause specifies the start and end dates of the original lease and details the conditions under which the tenant can exercise renewal options, such as providing advance written notice or meeting certain requirements. Its core practical function is to provide both parties with clarity and predictability regarding the length of the tenancy and the process for extending it, thereby reducing uncertainty and potential disputes over occupancy periods.