lease purchase/ lease option

[kimesha]

what is the difference in this. i'm guessing (commom sense) one is asking for an option and the other is saying i will buy for sure.?

[investinAK]

Hi Kimesha,

They are both the same thing, just different names. Mean the same exact thing, you still have the option to buy, but not the requirement.

Hope that helps, :)

Ryan

[Pasquini]

They aren't exactly the same.

A lease option is a unilateral contract. Seller agrees to sell, and buyer may or may not buy at their discretion.

A lease purchase is a bi-lateral contract. Seller agrees to sell, and buyer agrees to buy.

[investinAK]

Please forgive me if I was incorrect, I found the answer on another site...I am glad to know that these are different as I had been led to believe otherwise:

10. The difference between a Lease 2 Purchase and a Lease Option?

The truth is, there is absolutely no difference between a Lease 2 Purchase and a Lease Option. A few people say there is, but they are wrong...

When an experienced real estate professional talks about a Lease 2 Purchase or a Lease Option agreement, they are really talking about an arrangement that contains both a lease contract and an option to purchase contract. By definition, this is really a Lease 2 Purchase (or Lease Option, depending on your perspective). Thus...

Lease + Option to Purchase = Lease Option AND Lease 2 Purchase

They're exactly the same! Don't let anyone tell you otherwise.


That is what I had found, and that was the basis for my answer. I apologize if it was incorrect.

[Tony Putman]

It would seem to me that a Lease/Purchase and a Lease 2 Purchase is where the difference is. A Lease/Option and a Lease 2 Purchase appear to mean the same thing. It would be the unilateral contract.

A Lease/Purchase would appear to mean the bilateral contract as stated by Pasquini.

Hope that helps. :SM135:

[investinAK]

I suppose that makes a little more sense. Who would think that a number could change the entire meaning of your contract? Oh well...

[Pasquini]

Not sure what site you found the definition at, but Lease 2 Purchase is a marketing term. If you go to Black's Law Dictionary you won't find any numbers in their terms. Sounds like either hip-hop or text messaging comes to real estate.

[investinAK]

I suppose Lease 2 Purchase would be the same as Rent 2 Own, eh? Well, I am glad you were here to catch that Pasquini! :)

Oh by the way, that definition came from www.lease2purchase.com

[LeaseOptionKing]

They are different. A Lease Option does not obligate the Buyer to purchase. With a Lease Purchase, the Buyer IS obligated to purchase. I have never heard of a Lease Purchase Contract without a contingency, though (a way to back out), so that effectively and for all intents and purposes makes them both the same in practice.