In most instances an option can be assigned, usually for payment. While options are common place in share markets and commodities with many derivative variations real estate options are rather new and unsophisticated. However real estate options may be traded, swapped for cash or exchanged for another option.
Lease Options are usually purchased by a tenant wishing to rent buy. The tenancy agreement is a straight foward rental agreement for a specified term. The option is a separate agreement giving the tenant the option to buy the property at the end of the lease, subject to agreed terms.
There are infinite variations possible in any lease option arrangement which can be tailored to suit both the tenant and the owner of a property. However if either the lease or the option are assigned to a third party that person or legal entity is subject to the terms agreed upon by the original tenant and owner.
For property owners an option agreement enables the owner to get cash just for giving another person the option (but not obligation) to purchase their property. If the property is a home, the homeowner still owns the property and lives in the home normally. The best part is that the property owner just receives cash without doing any work by simply giving another person the option to purchase their home.