Contracts
In Pennsylvania, a lease-purchase agreement differs from a lease-option agreement in that the lease-purchase:
AGives the tenant an option to buy that they may decline
BObligates the tenant/buyer to purchase the property at the end of the lease term✓ Correct
CAllows the tenant to purchase at market value regardless of agreed price
DIs illegal under Pennsylvania landlord-tenant law
Explanation
In a lease-purchase (rent-to-own with obligation), the tenant agrees to purchase the property at the end of the lease — it is a contract to buy. In a lease-option, the tenant has the right but not the obligation to purchase. Both arrangements must be carefully structured with proper disclosures in Pennsylvania.
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