If they don't exercise their option to buy within the time period allotted, the option monies and any payments made toward the house are forfeited.
Surprisingly, I have found that only a small percentage of Lease Option buyers will actually exercise the option. (50%-60%) I cover this material in detail in my book.
Death and taxes! The certainties of life! And then, of course, there are the mortgage payments, the utility bills, phone bills, the car payments and thirsty automobiles. Add that to the grocery and clothing bills, and there appears to be more then just death and taxes as certainties of life.
If you're thinking about getting into the type of real estate investment that involves fixer uppers, be careful. Think long and hard before setting yourself up for this kind of project because it is time consuming and sometimes costly. You have to make sure that your costs in this type of real estate investment will ultimately be minimal compared to your gains.