Set Up Lease Options

You record a lease's renewal, termination, and purchase options on the lease's Options page. Each option type has its own section with a yes/no toggle and its own add flow, and every option takes an optional Earliest Notice Date (Optional) and a required notice deadline. The deadline's label follows the lease's jurisdiction: Notice Deadline in the generic jurisdiction, Cancellation Deadline for a French lease in English, and Date Limite de Résiliation for a French lease in French.

You can enter options on any lease you can edit: a draft you are building (see Create a lease) or a published lease you have opened for a correction or amendment (see Correct or Amend a Lease). The Options page cannot be opened while AI is still reading a lease document into the draft, and the form is disabled while you hold no editing session and the concurrent editor sessions are full. Nothing you save here affects critical dates, payments, or accounting until the draft is published.

Record a renewal option

Renewal options build a chain on the renewal timeline: the slot after an existing option continues that chain, and the Alternative Options toggle adds a separate alternative chain, so a lease can carry both a primary sequence of renewals and alternatives to it.

1. Open the lease and choose Options on the lease record.

2. Turn on Does the lease contain any renewal options? if it is not already on. The renewal timeline appears.

3. Click Add Renewal Option. The slide-over opens on the timeline, which shows where a renewal can sit: the first slot is Renewal Option 1, each existing chain offers its next slot (such as Renewal A2), and turning on Alternative Options reveals a slot for a new alternative chain (such as Renewal B1).

4. Click Add Option on the slot where the option belongs.

5. In the Term step, answer What is the renewal option term length? with a preset from 1 to 10, or Other and a custom length, then choose What unit of time?: Days, Weeks, Months, Quarters, or Years.

6. Choose how the renewed term lands with On which day does it land? and its rounding controls. The option's Start Date and End Date show the dates that result.

7. In the Conditions step, turn on Are any Legal Conditions included? and enter each condition with Add Condition.

8. In the Notice Intent & Timing step, choose the Renewal Method: Opt In or Opt Out. Set Earliest Notice Date (Optional) and the required notice deadline, which must precede the option's start date.

9. Set the Rent Determination Method for the renewed term: Fair Market Value, Negotiated, or New Rent Schedule. See Set Up Rent and Escalations for how rent obligations are recorded.

10. Click Add.

Record a termination option

A termination or early-cancellation option belongs to whichever party holds it, and it can end the lease on a single date or across a window of dates. Termination options are the only option type whose notice deadline carries helper text from the lease's jurisdiction.

1. Turn on Does the lease contain any termination/early cancelation options? if it is not already on.

2. Click Add Termination Option.

3. In the Term step, choose Held By under Option Holder: Lessor or Lessee.

4. Under When Termination Takes Effect, answer Can the lease end on a single date or within a window? The form starts on Window. Single Date takes an Effective Date of Termination; Window takes an Earliest Effective Date of Termination and a Latest Effective Date of Termination, and the latest date must be on or after the earliest.

5. Under Penalty, turn on Is there a termination penalty? when one applies and enter the required Penalty Amount.

6. In the Conditions step, turn on Are any Legal Conditions included? and enter each condition with Add Condition.

7. In the Notice Intent & Timing step, set Earliest Notice Date (Optional) and the required notice deadline, which must precede the earliest termination date.

8. Click Add.

Record a purchase option

A purchase option's price is either known when the lease commences or determined later by fair market value or negotiation.

1. Turn on Does the lease contain any purchase options? if it is not already on.

2. Click Add Purchase Option.

3. In the Term step, answer Can the purchase take place on a single date or within a window? Single Date takes a Purchase Date; Window takes an Earliest Purchase Date and a Latest Purchase Date.

4. Answer Is the purchase price known at commencement? When it is, answer Is it one price, or does it change with the purchase date?: One Price takes a Purchase Price, and A Schedule takes a Currency and a Price Schedule of From and Price rows added with Add price. When the price is not known at commencement, choose the Price Determination Method: Fair Market Value or Negotiated.

5. In the Conditions step, turn on Are any Legal Conditions included? and enter each condition with Add Condition.

6. In the Notice Intent & Timing step, set Earliest Notice Date (Optional) and the required notice deadline, which must precede the earliest purchase date.

7. Click Add.

Log an option election

Exercising or declining an option is recorded separately from setting the option up, as a transaction on the lease's Transactions page. The Log option election action appears in the Options section when the lease has at least one option to elect and you can log transactions.

1. Open the lease and choose Transactions on the lease record.

2. In the Options section, click Log option election.

3. Answer Which type of option are you managing? with Renewal, Termination, or Purchase. A type is unavailable when the lease has no option of that kind.

4. Choose the option: Select the Renewal Option, Select the Termination Option, or Select the Purchase Option.

5. Choose your Election: Exercise or Decline. Exercising a termination or purchase option requires its exit date, a Termination Date or a Purchase Date: a window option takes the date you choose, and a single-date option fills its own date in. A Decline election takes no date.

6. Attach Option Related File(s) and a Note (Optional) when you have them.

An exercised renewal moves the lease's expiration to that option's end date. An exercised termination or purchase moves the expiration to the option's exit date.

What options drive

On a published lease, the notice deadlines you record become the lease's renewal, termination, and purchase notice-window critical dates; see Track critical dates and payments for watching them on the dashboard and calendar feed.