Contracts
In Texas, a 'lease-purchase' agreement differs from a simple lease with an option because in a lease-purchase:
AThe tenant has an option to buy or not buy
BThe tenant is obligated to purchase the property at the end of the lease term, not just given the option✓ Correct
CThe owner receives more favorable tax treatment
DTREC regulates the form of the agreement
Explanation
A lease-purchase (also called a lease-buy) binds the tenant to purchase the property at the end of the lease, unlike a lease with option where the tenant can decide not to buy. Texas courts and the Legislature treat these as executory contracts with significant consumer protections under Texas Property Code Chapter 5 if they are residential transactions.
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