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extension option

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extension option

An agreed-upon continuation of occupancy under the same conditions, as opposed to a renewal, which implies new terms or conditions. In a lease, it is a right granted by the landlord to the tenant whereby the tenant has the option to extend the lease for an additional period.



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Liverpool loudly trumpeted that agreement in May, and the new deal includes a one-year extension option that could keep Torres at Anfield until 2014.
There is a good lease in place with extension options.
 
 
 
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