A residential lease is a lease for a residential property (property in which you would live), such as a townhouse, single-family home, condominium or apartment. Applicable law refers to the laws of jurisdiction that apply to the contract or legal document. If the tenant/buyer does not exercise the option, the landlord can keep the option fee. From a landlord`s perspective, one of the disadvantages of a rental agreement with a tenant is that they do not receive an immediate cash sale for the property and there is no guarantee that the tenant will buy the house at the end of the term. Keep in mind that any jurisdiction may limit the number of tenants/residents in the premises if that number violates health or safety standards for housing. These standards vary by province or province, so if you are affected, contact your local housing or health authority.