Aren’t Lease Purchases and Lease Options the same thing?

So, aren’t Lease Purchases and Lease Options essentially the same thing? In a word: no.

They are similar in that you are renting the property for a period of time and that you have the opportunity to buy the property, but mechanically and the paperwork for them is different.

With a Lease Purchase, you have a lease agreement and a purchase contract. With a Lease Option, you have a lease agreement and an option agreement.

The purchase contract with a Lease Purchase implies that you intend to close on the property during the time period you’ve been given to get a new loan (or cash) to be able to buy the property.

The option agreement with a Lease Option implies that you can decide whether to buy or not. It is your option to do so.

There are pros and cons of each and savvy sellers and the real estate agents representing them will be negotiating to structure the agreement in their favor. You as the buyer and any real estate agent that represents you with the help of an attorney should be negotiating to structure the agreement in your favor. Somewhere in the middle is a fair arrangement.

Rent To Own FAQs

Rent To Own, Lease Option, Lease Purchase

Option Agreement

Attorney

>