At the Time the Option is exercised, full credit will be given for the amount of thiscontract fee payment on the lessees account on the HUD-1 form.c.

At the Time the Option is exercised, full credit will be given for the amount of thiscontract fee payment on the lessees account on the HUD-1 form.c.

In any case, I am enjoying this exercise. 

The book is on Lease Options and he mentioned that when buyers were buying to exercise their option on a property, if they had lived there for a year or two they were able to get a refinance loan instead of a new purchase loan. 

and very much dependent on the area of the country you work or reside in.good exercise would be to take Detroit and put it into A B C D class by area and see if anyone can agree on that  LOL.My lending days in Detroit was an eye opener...

But that is applying logic to the government which is an exercise in futility.  

When the end buyer goes to exercise his option, what kind of problems can his potential lender give him that would keep him from exercising his option?  

A seller/landlord is bound by the contract to sell you the property if you exercise your option according to the contract.

The pharmacy sets this up so that when options come up they either exercise or not and landlord has no leverage.

If it's really a promising property and you could add some value you might be in good shape when it comes time to exercise the option.