Lease Options and Property Improvements

[Mark Welp]

Hello,

Has anybody ever had a situation where they entered into a Lease Purchase Option Contract on a house as the seller/landlord and the tenant/buyer started making property capital improvements to the house and the agreements stated that this really was not allowed to be done until the house was purchased?

If the Lease Option does not end of working out with the buyer/tenant, what happens to the improvements?  Obviously they stay with the property, but does the buyer/tenant need to be reimbursed or anything?  Thanks!