Gloria paid her landlord $5,000 to have the option to purchase her leased cottage. What is this payment called?

The payment that Gloria made to her landlord to have the option to purchase her leased cottage is referred to as an option fee. This fee is a specific amount paid to secure the right or option to purchase the property in the future, usually for a defined period. The option fee is distinct from a down payment, which is an amount typically paid at the time of closing on a property purchase, as well as from a security deposit, which serves as a protection for the landlord against potential damages or unpaid rent during the lease term. The lease payment is simply the regular rent charged for occupying the premises and does not confer any purchasing rights. Thus, the option fee is the correct term for the payment made by Gloria in this context, as it grants her the option to buy the property later.