Which type of contract involves renting property with a potential future purchase?

The type of contract that involves renting property with a potential future purchase is accurately identified as a lease with an option to purchase. This arrangement allows the tenant to rent the property for a specified term while also providing them the right, but not the obligation, to purchase the property at a predetermined price at a future date.

This type of contract is beneficial for both parties: the landlord can generate income from the rent while maintaining ownership of the property, and the tenant gains the opportunity to test out living in or using a property before making a long-term financial commitment by purchasing it. The provision for the future purchase can be a powerful incentive for the tenant, allowing them to secure potentially favorable terms while having the flexibility to decide later on the purchase.

In contrast, a lease without an option would not provide the tenant with any rights to purchase the property, whereas other options like open-ended contracts focus on different parameters of agreements that typically do not include purchase options. Firm fixed pricing refers specifically to contract pricing structures and is not relevant to leasing arrangements.