Hi,
What is the difference between a Lease Option and a Lease Purchase, if any?
Also, is a Lease Purchase the same a Purchase Option like Peter Conti and David Finkel specialize in?
Thx/RV
I don’t think there is a big difference. I think some forms will explain that a lease purchase is actually committing you to buy the property, while a lease option only gives you the option to buy if you wanted to. Either way, with either I don’t believe you are required to buy at the end of the option period. Someone please correct me if I am wrong…
There are a few important differences.
A lease with option is a standard lease agreement with an OPTION to buy the property, either attached or part of the lease agreement. An option is a contract that gives the buyer the right, but not the obligation, to buy the property.
A lease purchase is a standard lease agreement with a purchase and sale contract attached to it. With the purchase contract, the buyer has agreed to actually buy the property by the date specified in the contract, and all penalities and remedies for a failure to do so would apply.
On the surface, it would seem that a lease purchase is a stronger combo. However, if problems arise that force the issue to court (ie an eviction), the lease purchase usually gives the buyer an equity interest in the property which would force the seller to have to file a foreclosure as opposed to an eviction.
Hope it helps,
Roger
roger, could this take place in ca. please explain
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