When the buyer is ready to buy, open the agreement and check "The buyer executed their option." Then choose how it closed:
Seller-financed → create the note
Choose this when you're carrying back the financing. NoteHarbor:
- Applies the accrued rent credits (plus any extra cash down) toward the purchase — as the down payment or a price reduction, per the agreement.
- Finances the remaining balance through the loan engine: an amortizing owner-finance note with the rate, term, and first-payment date you set.
- Creates the loan, links the buyer and property, and marks the agreement converted.
Sold for cash → close it out
Choose this when the buyer paid cash or brought their own financing. The agreement is marked exercised and closed — no carry-back note is created.
What about the deed?
On a structured / rent-to-own deal the deed stayed in the seller's name through the option period. When you convert to a real note, you transfer title per your agreement and NoteHarbor begins servicing the note from that point.
Converting an option has real tax consequences (installment sale, basis, depreciation recapture). Confirm the treatment with your accountant before you record it.