Contracts

What is a 'lease with option to purchase' versus a 'lease purchase agreement'?

AThey are the same contract
BA lease-option gives the tenant the right but not obligation to purchase; a lease-purchase contractually obligates the tenant to purchase at the end of the lease term✓ Correct
CA lease purchase is for commercial properties only
DA lease option is only valid for 6 months

Explanation

A lease-option (rent-to-own) gives the tenant the right to buy but not the obligation. A lease-purchase agreement creates both a lease and a binding purchase obligation — the tenant is contractually committed to buy at the end of the lease term.

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